Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Karen is taking out an amortized loan for $87,000 to open a small business and is dedding between the offers from two lenders. She wants

image text in transcribed
Karen is taking out an amortized loan for $87,000 to open a small business and is dedding 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 X 5 ? (a) A bank has offered her a 9-year small business loan at an annual Interest rate of 12.1%. Find the monthly payment. s (b) An online lending company has offered her a 8-year small business loan at an annual interest rate of 13.8%. Find the monthly payment. si (C) Suppose Karen 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 online lending company, Online lending company The total amount paid would be $ [] 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

Step: 3

blur-text-image

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

Essentials Of Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

6th Edition

0073226386, 978-0073226385

More Books

Students also viewed these Finance questions