Question

Problem 1. A person received the following promotion from their cable television dealer:
(1) Monthly payment of the service at a fixed price of $ 750 / month for the next 3 years, or
(2) One-time payment of $ 20,250 for coverage of these three years, that is, a discount of 25% of the total subscription cost, which is $ 27,000.
Determine the best course of action for this person, if you have a 9% annual rate of return with monthly capitalization at your disposal.

Questions

Equivalent value of monthly payments at the beginning of the contract Monthly payments = $

Equivalent value of the single payment at the start of the Punic contract = $

Recommendation for the person (course of action):


Equivalent value of monthly payments at the end of the contract Monthly payments = $

Equivalent value of the single payment at the end of the Funeral contract = $

Recommendation for the person (course of action):

Answer 1

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