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Tangle Transcontinental Corp. needs to take out a one-year bank loan of $450,000 and has been offered loan terms by two different banks. One bank

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Tangle Transcontinental Corp. needs to take out a one-year bank loan of $450,000 and has been offered loan terms by two different banks. One bank has offered a simple interest loan of 10% that requires monthly payments. The loan principal will be paid back at the end of the year. Another bank has offered 7%6 add-on interest to be repaid in 12 equal monthly instaliments. Based on a 360-day year, what will be the monthly payment for each loan for November? (Hint: Remember that November has 30 days.) Choose the answer that best evaluates the following statement: A bank loan officer has been approached by a start-up company that needs a five-year loan to purchase the cquipment for its first project. The project wili have a life of five years. At the end of five years, the equlpment will be worthless. The founders of the company told the loan officer that they would be willing to pay a much higher interest rate on a simple interest loan rather than contracting to an add-on interest loan. The loan officer should offer the company a simple interest loan. The bank will make more money in the long run, because it can charge a much higher interest rate: The loan officer should offer the company an addion interest loan because there is a high risk that the company will not be able to repay the principal on the loan at the end of the project's life. Value Simple interest monthly payment Add-on interest monthly payment Choose the answer that best evaluates $3,750.00 statement: $3,375.00 A bank loan officer has been approache will have a life of five years. At the end $3,187.50 the equipment wil would be willing to pay a much higher interest rate on a simple interest Value Simple interest monthly payment Add-on interest monthly payment Choose the answer that best evaluates $40,125.00$34,106.25 tatement: will have a life of five years. At the end the equipment will would be willing to pay a much higher i $36,112.50 a simple interest Ic

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