The writer is very fast, professional and responded to the review request fast also. Thank you.
Maria had received a huge number of parking tickets over a 15-year period but didn’t bother to pay any of them. She owes the local municipality 25,088.51 euros in unpaid parking tickets and 22,142.85 euros in late payment fees. To enforce payments of outstanding debt, local municipalities have coordinated with the central government and managed to freeze the assets of citizens with such debt. Recently, the government oered the possibility of restructuring such debt according to the following rules: (i) Plan A: if 2 to 24 monthly payments of equal value are arranged, then 80% of the late payment fees is forgiven; (ii) Plan B: if 25 to 48 monthly payments of equal value are arranged, then 70% of the late payment fees is forgiven; (iii) Plan C: if 49 to 72 monthly payments of equal value are arranged, then 60% of the late payment fees is forgiven; and (iv) Plan D: if 73 to 100 monthly payments of equal value are arranged, then 50% of the late payment fees is forgiven. In each case, the amount of monthly payment is determined so that the balance is completely paid o when the last payment is made. Maria’s son, Jorge, oers to bail her mother out by providing 34,000 euros in cash. At the same time, Jorge teaches his mother the basics of time value of money and discounting.
1. Suppose that Maria can use the cash she received from Jorge to oer a loan, up to 34,000 euros, to Manuel, a local small business owner who wants to expand his
business. Manuel agrees to pay back in monthly installments, of equal value, based on a quarterly APR of 3%. The loan amount and number of monthly payments made by Manuel is to be chosen by Maria. What is the optimal plan that Maria should follow to pay o her debt? [You need to specify the exact number of monthly payments to the local municipality and the exact monthly payment amount.]
2. How would Maria’s optimal plan change if Manuel oered a 7% monthly APR? [Again, you need to specify the exact number of monthly payments to the local municipality and the exact monthly payment amount.]
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more