Leila is taking out an amortized loan for $84,000 to open a small business and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the small business loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Her credit union has offered her a 8-year small business loan at an annual interest rate of 11.8%. Find the monthly payment. (b) A savings and loan association has offered her a 10-year small business loan at an annual interest rate of 12.1%. Find the monthly payment. (c) Suppose Leila pays the monthly payment each month for the full term. Which lender's small business loan would have the lowest total amount to pay off, and by how-much? O Credit union The total amount paid would be $les less than to the savings and loan association. O Savings and loan association The total amount paid would be $ less than to the credit union.
Leila is taking out an amortized loan for $84,000 to open a small business and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the small business loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Her credit union has offered her a 8-year small business loan at an annual interest rate of 11.8%. Find the monthly payment. (b) A savings and loan association has offered her a 10-year small business loan at an annual interest rate of 12.1%. Find the monthly payment. (c) Suppose Leila pays the monthly payment each month for the full term. Which lender's small business loan would have the lowest total amount to pay off, and by how-much? O Credit union The total amount paid would be $les less than to the savings and loan association. O Savings and loan association The total amount paid would be $ less than to the credit union.
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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Transcribed Image Text:Leila is taking out an amortized loan for $84,000 to open a small business and is deciding between the offers from two lenders.
She wants to know which one would be the better deal over the life of the small business loan, and by how much.
Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.
If necessary, refer to the list of financial formulas.
(a) Her credit union has offered her a 8-year small business loan at an annual interest rate
of 11.8%. Find the monthly payment.
(b) A savings and loan association has offered her a 10-year small business loan at an
annual interest rate of 12.1%. Find the monthly payment.
(c) Suppose Leila pays the monthly payment each month for the full term. Which lender's
small business lean would have the lewest total amount to pay eff, and by how much?
O Credit union
The total amount paid would be $
less than to the savings and loan association.
O Savings and loan association
The total amount paid would be $|
less than to the credit union.
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