You are offered an add-on loan for $4,500 at 18% for 5 years. What is the monthly payment? What is the amount of interest? What is the true interest rate cost of this loan? If you could pay the same loan above at a compound rate: What would the monthly payment be? What would the amount of interest be? 3. Prepare a monthly payment schedule for each loan above using Excel, and submit it.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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You are offered an add-on loan for $4,500 at 18% for 5 years.
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What is the monthly payment?
-
What is the amount of interest?
-
What is the true interest rate cost of this loan?
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-
If you could pay the same loan above at a compound rate:
-
What would the monthly payment be?
-
What would the amount of interest be?
3. Prepare a monthly payment schedule for each loan above using Excel, and submit it.
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You are offered an add-on loan for $4,500 at 18% for 5 years.
-
What is the monthly payment?
-
What is the amount of interest?
-
What is the true interest rate cost of this loan?
-
-
If you could pay the same loan above at a compound rate:
-
What would the monthly payment be?
-
What would the amount of interest be?
3. Prepare a monthly payment schedule for each loan above using Excel, and submit it.
-
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