Need help? We are here

# Option A is a scheme where customers can pay for the bike in monthly

Lokesh wants to buy a Vespa motorcycle to be able to get to work easily, as well as indulge in leisurely road trips. His local retailer sells the model he likes for £3000. However he doesnt have the money to pay upfront so is looking at different financing options.

Option A is a scheme where customers can pay for the bike in monthly instalments over three years, at a fixed APR of 18%.

Option B is for Lokesh to use a combination of savings and a credit card loan. This would use up all of his savings of £2000, currently in a savings account, and the credit card would pay for the remainder. The APR on his credit card is 26%. He would repay £25 monthly.

3.1  Briefly explain what APR is and how it can be used. (3 marks)

3.2  Using the Borrowing and saving calculator, calculate the missing figures in Table 2 below, and show your workings. (6 marks)

Table 2

Monthly payment

Repayment period

Total interest paid

Option A

Option B

3.3  Discuss one advantage and one disadvantage of Option A over Option B. (6 marks)

(Total marks available for Question 3: 15 marks)

Word limit for Part A: 800 words

Part B (45% of the mark for this assignment)

Read the two sentences below, from an analysis of trends in household debt published at the end of 2017.

Debt lets households smooth shocks and invest in high-return assets such as housing or education, raising average consumption over their lifetimes. However, high household debt can make the economy more vulnerable to disruptions, potentially harming growth.

(Zabai, 2017, p.39)

Write an essay that further explains all the statements made in these two sentences, and that makes clear why secured as well as unsecured debt contributes to the costs and benefits they identify.

(Total marks available for Part B: 45 marks)

#Option #scheme #customers #pay #bike #monthly

Pages (275 words)
Standard price: \$0.00

### Latest Reviews

Impressed with the sample above? Wait there is more

Related Questions

### Overview:  Plato Specialty Chemical Co. decided to expand its portfolio by

Overview:  Plato Specialty Chemical Co. decided to expand its portfolio by acquiring Chemco in Middlebury, CT and Aristo in Cary, NC. The effort to bring

### The Family and Medical Leave Act (FMLA) provides a guaranteed

The Family and Medical Leave Act (FMLA) provides a guaranteed unpaid and job-protected leave of absence for employees to provide care for family and medical

### Assignment Content Your Smallville client has asked Gail Industries to investigate

Assignment Content Your Smallville client has asked Gail Industries to investigate the exposure to external users doing transactions over the internet. As the Gail

### For the Community Experience Project you will be required to find a video on YouTube or any other social media

For the Community Experience Project, you will be required to find a video on YouTube or any other social media site where you will be

### Minimum of 300 words with at least 2 peer review reference in 7th edition apa style Summarize and discuss the

Minimum of 300 words with at least 2 peer review reference in 7th edition apa styleSummarize and discuss the clinical characteristics of ALZHEIMER DISEASE and

In addition to reading the Announcements, prepare for this discussion by reading the Required Resources, the Week Four Instructor Guidance, and the scenario provided

### Country Philippines Part I: Rule of Law and Ethics create 3 PowerPoint Slide Presentation with Speaker Notes

Country – PhilippinesPart I: Rule of Law and Ethics – create 3 PowerPoint Slide Presentation with Speaker Notes1. Using the country selected, present the influence

### From Citizen Kane to The Natural to The Great Gatsby and The Old Man a

Answer two questions in fully developed, detailed essays. Be sure to formulate a thesis for each and support it with concrete and specific evidence from

### Topic: Prevention of drug and substance abuse Using your topic

Topic: Prevention of drug and substance abuse Using your topic from Part 1 of this project, outline the details of your communication campaign. In 1,500-2,000

### By the due date assigned, submit your responses to the

By the due date assigned, submit your responses to the discussion question given below. Submit your responses to this Discussion Area. Respond to the

### Discussion: Perspectives of Problems How you view a problem and what you propose to effect positive change relative to the

Discussion: Perspectives of ProblemsHow you view a problem and what you propose to effect positive change relative to the problem is closely related to your

### Obstacles To Success write a 3 page essay outlining these Obstacles that I listed below Selfesteem obstacle : Am I

Obstacles To Successwrite a 3 page essay outlining these ‘Obstacles’ that I listed belowSelf-esteem obstacle : Am I smart enough ? Am I good enough?

New questions