Question
Reuben has the option of receiving a loan of $14,500 for 15 years at an interest rate of either 4.49% compounded monthly or 4.49% compounded
Reuben has the option of receiving a loan of $14,500 for 15 years at an interest rate of either 4.49% compounded monthly or 4.49% compounded semi-annually.
a. What would be the accumulated value of the loan at the end of the term, if it was received at the interest rate of 4.49% compounded monthly?
Round to the nearest cent
b. What would be the accumulated value of the loan at the end of the term, if it was received at the interest rate of 4.49% compounded semi-annually?
Round to the nearest cent
c. How much more interest would Reuben have to pay if he chose the monthly compounding interest rate intead of the semi-annually compounding rate?
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
