(a) You need to borrow £20,000 for a total of 10 years. You have two options. The first option is to use a credit card with interest rate compounded monthly. The second option is a loan with interest rate compounded yearly and APR (annual percentage rate) equal to 2%. What is the credit card daily interest rate that would make the second option more attractive than the first one? (b) How does the answer to part (a) change if you need to borrow £2000 for 5 years?

Suppose you are given two loan options.  The first one allows you to borrow money at 8.6% per year, compounded semi-annually.  The other option allows you to borrow at 8.4% per year but compounded monthly.  Calculate & explain which option is better from the borrower’s point of view.  What is your conclusion from the answers ?

Suppose that you want to avoid paying interest and decide you'll only buy the furniture when you have the money to pay for it. An annuity is basically the opposite of a fixed-installment loan: you deposit a fixed amount each month and receive interest based on the total amount that's been saved. The future value formula is: A = [( The future value would be $ 12M 1+ 12 Y where M is the regular monthly payment, r is the annual interest rate in decimal form, and t is the term of the annuity in years. If you chose an annuity with a term of two years at 4.7% and a monthly payment of $100, the future value would be $2511.27. Recalculate the future value amount if you're willing to raise your monthly payment $20 per month. Round your answer to the nearest cent. 121 X 6

You are taking out a single-payment loan that uses the simple interest method to compute the finance charge. You need to figure out what your payment will be when the loan comes due. The equation to calculate the finance charge is: FsFs = Amount of Loanx   Interest Ratex   Term of Loan   where FsFs is the finance charge for the loan, and the term of the loan is in    .   You’re borrowing $10,000 for two years with a stated annual interest rate of 6%.