{"id":3114,"date":"2021-06-25T13:25:04","date_gmt":"2021-06-25T17:25:04","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/?post_type=chapter&p=3114"},"modified":"2021-06-29T19:00:13","modified_gmt":"2021-06-29T23:00:13","slug":"videos-payment-plans-and-making-choices-2","status":"web-only","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/chapter\/videos-payment-plans-and-making-choices-2\/","title":{"raw":"Videos: Payment Plans and Making Choices","rendered":"Videos: Payment Plans and Making Choices"},"content":{"raw":"1. For your first job after graduation you have decided to accept a contract position. The manager has offered to pay you $30,000 at the end of the first year and $35,000 at the end of the second year or to pay you $22,000 now, $20,000 at the end of the first year and $20,000 at the end of the second year. Which option is better and by how much, if interest is 10% simple? Use today as your focal date.\r\n\r\n[embed]https:\/\/youtu.be\/0TWaUBaGipQ[\/embed]\r\n\r\n \r\n\r\n2. You have two debts coming due. A debt of $1000 in 6 months and another of $1500 at the end of the year. Interest is charged at 12% simple. You speak to Mr. Hammerhead, the loans manager, and discuss several different payment options.\r\nHow much would it cost to payoff both the debts today? (focal date = today)\r\nYou would like to defer your repayment and repay the whole debt in 18 months. How much would you have to pay? (focal date = 18 months)\r\n\r\n[embed]https:\/\/youtu.be\/A8xNPVlNj5M[\/embed]\r\n\r\n ","rendered":"

1. For your first job after graduation you have decided to accept a contract position. The manager has offered to pay you $30,000 at the end of the first year and $35,000 at the end of the second year or to pay you $22,000 now, $20,000 at the end of the first year and $20,000 at the end of the second year. Which option is better and by how much, if interest is 10% simple? Use today as your focal date.<\/p>\n