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Opportunity cost interest rate: 4 percent
3. You can purchase a service contract for all of your major appliances
for $180 a year. If the appliances are expected to last for 10 years, and
you earn 5 percent on your savings, what would be the future value of
the amount you would pay for the service contract?
4. You estimate that you can save $3,800 by selling your own home
rather than using a real estate agent. What would be the future value
of that amount if invested for five years at 7 percent?
5. John Walters is comparing the cost of credit to the cash price of an
item. If John makes a $60 down payment, and pays $34 a month for 24
months, how much more would that be than the cash price of $695?
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BUSN 380 Week 5 Quiz

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Question 1. 1. (TCO 1) _____ is the first phase of the consumer buying
process. (Points : 1)
Gathering information
Evaluating alternatives
Selecting the buying location
Researching alternatives
Identifying the problem