Question
Linda decided to borrow $350,000 from a bank to buy her dream house. She approached Prosperity Bank and they offered Linda the following mortage package:
Linda decided to borrow $350,000 from a bank to buy her dream house. She approached Prosperity Bank and they offered Linda the following mortage package: interest rate of 2.45 % per year, weekly repayment, for 30 years. Required: a) Calculating the amount of weekly repayment Linda needs to make for the mortgage.
ANSWER a):
b) Linda is considering two investment offers for saving up money to pay off her mortage in 10 years. Investment A offers the rate of return of 9.95% per year, compounding daily. Investment B offers the rate of return of 10% per year, compounding quarterly. Help Linda choose the better investment by calculating Effective Annual Interest Rate (EAR).
ANSWER b):
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The Illiterate Executive An Executives Handbook For Mastering Financial Acumen
Authors: Blair Cook
1st Edition
1460289935, 978-1460289938
