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5. Effective rates. Which of the following loans offers a lower effective rate? Calculate the numbers and explain why. House B C House price 400000

5. Effective rates. Which of the following loans offers a lower effective rate? Calculate the numbers and explain why. House B C House price 400000 400000 Down payment 10% 10% Loan rate 4.10% 4.05% Loan term 30 30 Points 0.00 1.00 M. Tarrazo, Ph.D. Investment Analysis.

a) Payment, monthly ________________

b) Eff. rate monthly ________________

c) Eff. rate yearly ________________

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