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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You 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.

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