Seqways Daily Distanc Daily Tours Revenue per Expenses PTotal Profit

3 60 20 700.00 145.00 555.00

Profit for Entire Summer

Days in S Revenue per Expenses PerTotal Profit
90 63,000.00 13,050.00 49,950.00

Break Even 14.50

additional charge needed for a profit of $300 per day

additional 300
additional 30
A EDWARD SEARS
COST PAID 170 170
CASH DISC -3.4 -5.1
QUANTITY 0 -5.95
COST PER 166.6 158.95

B. EDWARD SEARS
COST PER 166.6 158.95
OVERHEAD 60 100
DESIRED P 72 140
COST PER 298.6 398.95

C. MSRP 400 400

TOTAL COS 226.6 258.95
PROFIT 173.4 141.05
PROFIT PE 43.35% 35.26%

D. Edwards can offer a mark down of $101.4 ($400 - 293.6) or 25.35% of MSRP.
Intended selling price after including desired profit is $293.6. It can offer mark down of $101.4 and it is 101.4]400 =

Sears can offer a mark down of $1.05 or 0.262596 of MSRP. Intended selling price after including desired profit is $3
It can offer mark down of $1.05 and it is 1.051400 2 0.262596 of MSRP
of $101.4 and it is 101.4]400 = 25.35% of MSRP

er including desired profit is $393.95.

PAYMENT PRESENT VINTEREST TIME FV COST
PLAN 1 54000 4.00% 1 $56,160.00 $2,160.00
PLAN 2 27560 4.00% 0.5 $28,105.80 $545.80
PLAN 3 4260 4.00% 1 $4,430.40 $170.40
Question 1
Rate 7.95%
Month OutstandinMonthly P Interest panew Balance
May 8500 953.62 56.3125 8443.688
june 8443.688 953.62 55.93943 8387.748
July 8387.748 953.62 55.56883 8332.179
August 8332.179 953.62 55.20069 8276.979
September 8276.979 953.62 54.83498 8222.144
October 8222.144 953.62 54.4717 8167.672
November 8167.672 953.62 54.11083 8113.561
December 8113.561 953.62 53.75234 8059.809
January 8059.809 953.62 53.39623 8006.412
February 8006.412 953.62 53.04248 7953.37

Rate 10.00%
Month OutstandinMonthly P Interest panew Balance
May 8500 850 70.83333 7720.833
june 7720.833 850 64.34028 6935.174
July 6935.174 850 57.79311 6142.967
August 6142.967 850 51.19139 5344.158
September 5344.158 850 44.53465 4538.693
October 4538.693 850 37.82244 3726.515
November 3726.515 850 31.05429 2907.569
December 2907.569 850 24.22975 2081.799
January 2081.799 850 17.34833 1249.148
February 1249.148 850 10.40956 409.5571

Savings on interest by borrowing from Shannon's parents:

To calculate the savings on interest, we subtract the total interest paid in scenario 1 from the total interest

Savings on interest = Total interest paid in scenario 1 - Total interest paid in scenario 2

Savings on interest = $386.03 - $800.20

Savings on interest = -$414.17

Shannon and Duncan saved $414.17 on interest by borrowing from Shannon's parents.
1 from the total interest paid in scenario 2.
Part 1

Plan A
Year INVEST OPENING INTEREST WITHDRA INTEREST TOTAL
0.05 2800000 4.50% 63000 2863000
.05-1 2863000 4.50% 750000 64417.5 2177418
1-1.15 2177418 5.00% 54435.44 2231853
1.15-2 2231853 5.00% 750000 55796.32 1537649
2-2.5 1537649 5.00% 38441.23 1576090
2.5-3 1576090 5.00% 750000 39402.26 865492.8
3-3.5 865492.8 5.50% 23801.05 889293.8
3.5-4 889293.8 5.50% 750000 24455.58 163749.4

Part 2

Year INVEST OPENING INTEREST WITHDRA INTEREST TOTAL

0 2800000 300000 0 2500000
0.05 2500000 2500000 4.50% 56250 2556250
.05-1 2556250 4.50% 700000 57515.63 1913766
1-1.15 1913766 5.00% 47844.14 1961610
1.15-2 1961610 5.00% 900000 49040.24 1110650
2-2.5 1110650 5.00% 27766.25 1138416
2.5-3 1138416 5.00% 0 28460.41 1166877
3-3.5 1166877 5.50% 32089.11 1198966
3.5-4 1198966 5.50% 975000 32971.56 256937.3
OPTION CAR DEALECREIDT UNBANK loan principal
Effective a 8.86% 9.72% 9.47% 10150.00

amount 14243.14 14661.35 14489.66

interest to 4093.14 4511.35 4339.66
interest saved by choosing the best option 418.22