4. Nombulelo Makwete has been shopping around for a loan to finance the purchase of a used car she is buying. She needs to borrow R205 000. She found four offers that seem to be attractive, but would like to choose the offer with the lowest annual interest rate. The information she was provided by the banks were as follows: Loan A B C D Principle amount R205 000,00 R205 000,00 R205 000,00 R205 000,00 Monthly payment -R9 842,64 -R7 207,19 -R5 448,90 -R4 169,49 Repayment term (months) 24 36 48 72 You may assume that the interest on all four loans above are compounded monthly. Which loan should Nombulelo take if she wants to choose the loan with the lowest annual interest rate?
4. Nombulelo Makwete has been shopping around for a loan to finance the purchase of a used car she is buying. She needs to borrow R205 000. She found four offers that seem to be attractive, but would like to choose the offer with the lowest annual interest rate. The information she was provided by the banks were as follows: Loan A B C D Principle amount R205 000,00 R205 000,00 R205 000,00 R205 000,00 Monthly payment -R9 842,64 -R7 207,19 -R5 448,90 -R4 169,49 Repayment term (months) 24 36 48 72 You may assume that the interest on all four loans above are compounded monthly. Which loan should Nombulelo take if she wants to choose the loan with the lowest annual interest rate?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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