Question
Consider the following two loans for P=$12,000. Loan A: 5 year loan, annual interest rate of...
Consider the following two loans for P=$12,000.
Loan A: 5 year loan, annual interest rate of 5%.
Loan B: 3 year loan, annual interest rate of 8%.
Both loans are paid monthly. On which loan will you pay the
least interest?
Homework Answers
Answer #1
Loan B has paid least interest.
Not the answer you're looking for?
Similar Questions
Consider the following two loans for P=$12,000. Loan A: 5 year loan, annual interest rate of...
Consider the following two loans for P=$12,000.
Loan A: 5 year loan, annual interest rate of 5%.
Loan B: 3 year loan, annual interest rate of 8%.
Both loans are paid monthly. On which loan will you pay the
least interest?
Which of the following one-year, $1000 bank loans offers the lowest effective annual rate? a. A...
Which of the following one-year, $1000 bank loans offers the
lowest effective annual rate?
a. A loan with an APR of 6%, compounded monthly
b. A loan with an APR of 6%, compounded annually, with a
compensating balance requirement of 10% (on which no interest is
paid)
c. A loan with an APR of 6%, compounded annually, with a 1% loan
origination fee
Given the following terms a loan amount of $1,200,000; annual rate of 5.33%; a 5 year...
Given the following terms a loan amount of $1,200,000; annual
rate of 5.33%; a 5 year term with a future payoff balance of
$60,000. Determine what's your a. monthly payment, b. interest
portion of your payment in month 5, and c. principal payments paid
in year 3
Two loans, both of an amount of 720,000 are repaid at a nominal interest rate of...
Two loans, both of an amount of 720,000 are repaid at a nominal
interest
rate of 19.2% convertible monthly. Loan 1 is to be repaid with 360
level monthly
payments. Loan 2 is to be repaid by 360 monthly payments, each
containing
equal principal amounts and an interest amount based on the unpaid
balance.
Payments are made at the end of each month for both loans. The
monthly
payment for Loan 1 first exceeds the monthly payment for Loan 2...
Loan Amortization GIVEN: A $12,000 4-year loan at 5%. FIND for each year: a. Annual loan...
Loan Amortization
GIVEN: A $12,000 4-year loan at 5%.
FIND for each year:
a. Annual loan payment
b. Beginning-of-year balance
.c. Annual interest
d. Annual principal
e. End-of-year balance
Which of the following is true when comparing two loans for the same amount of money...
Which of the following is true when comparing two loans for the
same amount of money at the same interest rate for the same amount
of time, but with different payment frequencies?
Group of answer choices
Annual payments are less than the total of a year's worth of
monthly payments
Total interest paid in a year for a loan with monthly payments
is less than the total interest paid in a year for a loan with
annual payments
Total principal...
A local finance company quotes a 20% interest rate on a one year loan. If you...
A local finance company quotes a 20% interest rate on a one year
loan. If you borrow $10,000, the interest for the year will be
$2,000. Because you will pay a total of $12,000, the finance
company requires that you pay $1,000 per month over the next 12
months with the first payment in one month. Is this a 20% loan?
Find the effective annual interest rate on this loan.Find the
annual interest rate compounded monthly.
Consider two loans with one-year maturities and identical face values: a(n) 7.6 % loan with a...
Consider two loans with one-year maturities and identical face
values: a(n) 7.6 % loan with a 0.96 % loan origination fee and
a(n) 7.6 % loan with a 5.1 % (no-interest) compensating balance
requirement. What is the effective annual rate (EAR) associated
with each loan? Which loan would have the highest EAR and why?
The EAR in the first case is nothing%. (Round to one decimal
place.) The EAR in the second case is nothing%. (Round to one
decimal place.)...
(B-8) Angela Montery has a five-year car loan for a Jeep Wrangler at an annual interest...
(B-8) Angela Montery has a five-year car loan
for a Jeep Wrangler at an annual interest rate of 6.9% and a
monthly payment of $599.50. After 3 years, Angela decides to
purchase a new car. What is the payoff on Angela's loan?
(C-9) You receive a 10-year subsidized student
loan of $11,000 at an annual interest rate of 5%. What are your
monthly loan payments for this loan when you graduate?
Consider a $75,000 mortgage loan with an annual interest rate of 4 percent. The loan term...
Consider a $75,000 mortgage loan with an annual interest rate of
4 percent. The loan term is seven years, but monthly payments will
be based on a 30-year amortization schedule. What is the monthly
payment? What will be the required balloon payment at the end of
the loan term?
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 9 minutes ago
asked 19 minutes ago
asked 21 minutes ago
asked 30 minutes ago
asked 43 minutes ago
asked 51 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago