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Jean recently boughta buildingfor $10 million financed entirely througha 20-year bank loan. The interestrateontheloanis3percentperyear.Afterbuyingthebuilding,Jeanwinsa$10millionlottery. ShouldJeanpayoffthebankloanrightaway?Describethedecisionqualitatively(usingtheconceptof economicnet benefit).No numerical calculationsarenecessary.

  1. Jean recently boughta buildingfor $10 million financed entirely througha 20-year bank loan. The interestrateontheloanis3percentperyear.Afterbuyingthebuilding,Jeanwinsa$10millionlottery. ShouldJeanpayoffthebankloanrightaway?Describethedecisionqualitatively(usingtheconceptof economicnet benefit).No numerical calculationsarenecessary.

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