The Data
• Lightning Wholesale has opted to only carry two ski brandsin 2014: Ogasaka and Nordica.
• The list prices for Ogasaka and Nordica are $840.00 and$800.00, respectively.
• The typical monthly compounded interest rates charged by theretailers are 6%, 8.5%, 12%, and 16%.
• Lightning Wholesale recommends a 10% down payment on allfinance plans for all of its retailers.
Important Information
• All retailers sell the skis at the list price.
• All ordinary payment plans are either six month or ninemonth.
• Lightning Wholesale ignores sales taxes in its chart sinceevery province has varying rates.
Your Tasks
1. For both product lines and for each interest rate, developboth a six-month and a nine-month payment plan amount chart thatthe retailers can advertise that incorporates the required downpayment. For these advertised amounts, assume the final paymentremains the same as all other payments (in application, though, theretailers will need to be cautioned that the final payment may bedifferent and adjusted as needed, to which Lightning Wholesale canprovide the necessary information as required).
2. Retailers ask you how to adjust the advertised payment planchart amounts if they decide to sell the skis for some price otherthan the list price. What would you recommend? Provide calculationsto support your answer.
3. Some retailers charge different interest rates and want toknow if it is possible to just proportionally adjust the paymentplan chart. For example, if a retailer charges 9% interest, thisapproach would then be to increase the 6% payment by 50% of thedifference between the 6% and 12% level. Can retailers adjust yourpayment plan table in this way? Provide calculations using theprovided numbers to support your answer.
4. Some retailers offer a 12-month payment plan and ask if itis possible to just take the six-month payment numbers and divideby 2, or take the nine-month payment numbers and divide by 3/4 toarrive at the 12-month payment plan numbers. Can retailers adjustyour payment plan table in this way? Provide calculations tosupport your answer.
can you tell me the answers asap
