Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

isabel is taking out an amortized loan for 76000, to open a small business and is decideding between the offers from two lenders. she wants

isabel is taking out an amortized loan for 76000, to open a small business and is decideding between the offers from two lenders. she wants to know which one would be the better deal over the life of the small business loan and by how much.
answer each part. do not round intermediate computations and round your answers to the nearest cent
image text in transcribed
Isabel is taking out an amortized loan for $76,000 to open a small business and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the small business loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) A bank has offered her a 10-year small business loan at an annual interest rate of 11.1%. Find the monthly payment. (b) A savings and loan association has offered her a 8-year small business loan at an annual interest rate of 13.9%. Find the monthly payment. (c) Suppose isabel pays the monthly payment each month for the full term. Which lender's small business loan would have the lowest total amount to pay off, and by how much? Bank The total amount paid would be? less than to the savings and loan association. Sevings and loan association The total amount paid would be if less than to the bank

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketing For Financial Advisors

Authors: Eric Bradlow, Keith Niedermeier, Patti Williams

1st Edition

0071605142, 978-0071605144

More Books

Students also viewed these Finance questions

Question

Group Size and Communication

Answered: 1 week ago

Question

Understanding Group Roles

Answered: 1 week ago