# 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

### Prompt: Is there any way to refute skeptical arguments like

Prompt: Is there any way to refute skeptical arguments like the brain in a vat (BIV) argument (i.e. that while it seems to us that we

### Write a 175- to 350-word summary. Research a recent article on auditing cash,

Write a 175- to 350-word summary. Research a recent article on auditing cash, financial instruments, sales, or receivables. Apply what you learn to your future or current

### After completing the Week 7: Adult Development Map activity, respond

After completing the Week 7: Adult Development Map activity, respond to the following: The reading this week concluded with a description of integrated perspectives on

### Fukuzawa’s ideas regarding Japan’s position in the world changed over

I. Question Drawing upon Fukuzawa Yukichi’s writings, “A Discussion of our National Independence”(1874) and “Escape from Asia”(1884) construct an argument about whether Fukuzawa’s ideas regarding

### Review this week’s University Library Resources. In particular, watch “Intersections

Review this week’s University Library Resources. In particular, watch “Intersections of Mental Health and Incarceration.” 1,050- to 1,400-word analysis of the video that describes the relationship

### Class, People are using their mobile phone browsers more and

Class, People are using their mobile phone browsers more and more every day to find information about businesses, make product decisions and purchases, and

### 1. Report should include information about background, safety record of

1.  Report should include information about background, safety record of BP company, causes of explosion, consequences, companies involved and liability of the disaster  2.  3

### Prompt: Pick a contemporary international problem involving a regional power’s

Prompt: Pick a contemporary international problem involving a regional power’s relationship with a weaker country. This should be a current political, economic, or security problem

### In the initial milestone writing assignment, you will evaluate the

In the initial milestone writing assignment, you will evaluate the history of cryptography from its origins.  Analyze how cryptography was used and describe how it

### This journal exercise is a free writing assignment. There is

This journal exercise is a free writing assignment. There is no special formatting required. You are allowed to use informal citations, such as hyperlinks. The

### 1. The Equal Rights Amendment (ERA) was the most highly

1. The Equal Rights Amendment (ERA) was the most highly publicized and debated constitutional amendment before the United States for most of the 1970s and

### Week 16 – Assignment B – Peer Reviews for Reflective

Week 16 – Assignment B – Peer Reviews for Reflective Cover Letter Due Read and annotate each reflection essa’y. Annotate each paragraph of each essa’y.

New questions