Jenna isn’t sure if she should buy an extended warranty for her new laptop. use the paced decision-making process to her decide. here is some information you will need to know: the laptop costs $950, and the cost of the extended warranty is $99. the extended warranty covers everything for five years. under the extended warranty, the repairs may be done at a local store. otherwise, the laptop will need to be sent to the manufacturer for repairs. the laptop comes with a one-year limited warranty. repairs may cost anywhere between $50 and $450.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan