ou need to take out a loan of $35,000 to start up your T-shirt business. You have two possibilities: one bank is offering a 12% loan for 8 years, and another is offering a 15% loan for 6 years. Which loan has the lower monthly payments? Show work

ou need to take out a loan of $35,000 to start up your T-shirt business. You have two possibilities: one bank is offering a 12% loan for 8 years, and another is offering a 15% loan for 6 years. Which loan has the lower monthly payments? Show work

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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Similar questions

Your savings account currently has $300,000. You would like to withdraw $40,000 a year for the next 5 years to cover living expenses while you endure a PhD program. If the account is expected to earn an annual rate of 10%, how much will you have left in your account once you finish the program? please break down
You need $10,000 in six years. Which one of the following requires the lowest investment today? Investment A: A bank account paying 5% compounded annually. Investment B: A bank account paying 5% simple interest. Investment C: A bank account paying 5.5% simple interest. Investment A Investment B Investment C You need $10,000 in six years. Which one of the following requires the highest investment today? Investment A: A bank account paying 5.5% compounded annually. Investment B: A bank account paying 5% compounded annually. Investment C: A bank account paying 5.5% simple interest. Investment A Investment B Investment C You save $10,000 for five years. Which one of the following will have the lowest future value? Investment A: A bank account paying 5.5% compounded annually. Investment B: A bank account paying 5% compounded annually. Investment C: A bank account paying 5.5% simple interest. Investment A Investment…
What is the excel function and formula for this question? Off-The-Books Investment Firm, LLC, has offered you an investment it says will return to you $20,000 in 2 years. To get in, you'll need to make a $10,000 deposit to their receivables account and promise not to tell anyone about it. What is the annual return on this investment?
have tried this and keep getting the answer wrong i can’t figure it out
You want to buy a new sports coupe for $75, 300, and the finance office at the dealership has quoted you a loan with an APR of 7.7 percent for 36 months to buy the car. What will your monthly payments be?
Suppose you want to buy a $141,000 home. You found a bank that offers a 30-year loan at 3.7% APR. What will be your monthly payment? (Round to the nearest cent.) 2$ How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) 2$ Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) $4 How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) $ How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.)
You look at your budget and decide that you can afford $280 per month for a car. What is the maximum loan you can afford if the interest rate is 4% and you want to repay the loan in 6 years? (Round your answer to the nearest cent.)
Barry Wood wants to buy a used car that costs $5000. He has two possible loans in mind. One loan is through the car dealer; it is a three-year add-on interest loan at 6% and requires a down payment of $300. The second is through his credit union; it is a three-year simple interest amortized loan at 7.5% and requires a 10% down payment. (a) Find the monthly payment for each loan. (Give your answer to the nearest cent.) Dealer $ Credit Union $ (b) Find the total interest paid for each loan. (Give your answer to the nearest cent.) Dealer $ Credit Union $
Please make an excel spreadsheet and show the formulas in the cells for the problem below and please explain You buy a house of $450,000 today. You put a down payment of 20% and borrow a fixed-rate mortgage of $360,000 with interest rate of 4% and 15 years. After 3 years, your house is appreciated to the value of $550,000 and market interest rate goes up to 6.5%. How much money will you make in book after 3 years?
Please solve via excel and show calculation steps to solve table. Scenario: You have decided to finance a new home. The loan is for $248,000 and you are getting a rate of 5.9% per year compounded monthly. You have decided on a 15-year mortgage and will make monthly payments (end of the month). You decided you will pay 5% down at the beginning. You are working extra hours and expect to pay an extra $350 per month to knock down the principle. You make these payments for 6 years starting on month 25. The last EXTRA payment is on month 96. Build the amortization table. What month will you make your last payment? How much will your last payment be?
A few years down the road you move out, buying your own home. You decide to take another look at your finances. Your outstanding loan of $250 per month only has 10 payments left on it (out of the original 60) with an interest rate of 12.75%. What is the finance charge “f” what is the unearned intrest how much would it cost to pay it off on payment 51
You want to buy a $130,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 6.25% interest for the rest. The bank will charge 3 points on the amount financed.a) What is the amount of the down payment?b) How much is the loan amount going to be?c) What will be the amount charged for 3 points?d) Find the amount of the monthly payment.

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