Someone needs to borrow $14,000 to buy a car and the person has determined that monthly payments of $300 are affordable. The bank offers a 3-year loan at 7% APR, a 4-yearloan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain.Which loan best meets the person's needs?(Round to the nearest cent as needed.)OA. The third loan best meets the person's needs because the monthly payment of $OB. The second loan best meets the person's needs because the monthly payment of $OC. The first loan best meets the person's needs because the monthly payment of $OD. None of the loans meet the person's needs.is less than the maximum budgeted amount of $300 per month.is less than the maximum budgeted amount of $300 per month.is less than the maximum budgeted amount of $300 monthper

The cost of borrowing money each year, including fees, is stated as an annual percentage rate (APR).…

Someone needs to borrow $14,000 to buy a car and the person has determined that monthly payments of $300 are affordable. The bank offers a 3-year loan at 7% APR, a 4-year loan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain. COD Which loan best meets the person's needs? (Round to the nearest cent as needed.) A. The third loan best meets the person's needs because the monthly payment of $ is less than the maximum budgeted amount of $300 per month. OB. The second loan best meets the person's needs because the monthly payment of $ OC. The first loan best meets the person's needs because the monthly payment of $ is less than the maximum budgeted amount of $300 per month. is less than the maximum budgeted amount of $300 per month.

Someone needs to borrow $14,000 to buy a car and the person has determined that monthly payments of $300 are affordable. The bank offers a 3-year loan at 7% APR, a 4-year loan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain. COD Which loan best meets the person's needs? (Round to the nearest cent as needed.) A. The third loan best meets the person's needs because the monthly payment of $ is less than the maximum budgeted amount of $300 per month. OB. The second loan best meets the person's needs because the monthly payment of $ OC. The first loan best meets the person's needs because the monthly payment of $ is less than the maximum budgeted amount of $300 per month. is less than the maximum budgeted amount of $300 per month.

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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Yuli plans to purchase a vehicle, and she is working with two bank offers. . Bank One Loan Offer: $73,800, 6% annual interest, 60 months. . Bank Two Loan Offer: $73,800, 3% annual interest, 84 months. Yuli's ultimate financial goal is to select the loan with the lowest monthly payment regardless of duration. Based on her financial goal, which loan will Yuli choose? O A. Bank One: Loan Offer O B. Bank Two: Loan Offer OC. Both monthly payments are the same. O D. Not enough information given to answer the question.
Please answer C and D.
If you borrows $60,000 from the bank at 10% interest over the 7 years of the loan. • What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest (round to the nearest dollar)? • How much of his first payment will be applied to Interest? To Principle? • How much of his second payment will be applied to Interest? To Principle?
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