you have just contracted to purchase a house and will seek $100000 in financing. you go to several banks with the following results. (do using financial formulas not excel.)

11 Sept. 2018 Finite Math Take-home Exam on Finance Name 4. (6.2.97, this problem is worth 15 points) You have just contracted to purchase a house and will seek $100,000 in financing. You go to several banks with the following results Amount of Loan $100,000 $100,000 $100,000 $100,000 Length of Loan 30 years 15 years 30 years 15 years Origination Fee 1.75% 1.50% zero zero Interest Rate Bank #1 #2 #3 #4 5078% 4.310% 5.1 99% 4.840% a) Which bank's loan will result in the smallest monthly payment? Show all work neatly below and use extra sheets if necessary. Be sure to clearly mark your final answer b) Which bank's loan will result in the least amount of interest paid below and use extra sheets if necessary. Be sure to clearly mark your final answer c) Give sound reasons for which loan you, personally, would take (answers may vary, so ? Show all work neatiy scoring on this part is based on the quality of your individual reasoning) Page 6 of6 11 Sept. 2018 Finite Math Take-home Exam on Finance Name 4. (6.2.97, this problem is worth 15 points) You have just contracted to purchase a house and will seek $100,000 in financing. You go to several banks with the following results Amount of Loan $100,000 $100,000 $100,000 $100,000 Length of Loan 30 years 15 years 30 years 15 years Origination Fee 1.75% 1.50% zero zero Interest Rate Bank #1 #2 #3 #4 5078% 4.310% 5.1 99% 4.840% a) Which bank's loan will result in the smallest monthly payment? Show all work neatly below and use extra sheets if necessary. Be sure to clearly mark your final answer b) Which bank's loan will result in the least amount of interest paid below and use extra sheets if necessary. Be sure to clearly mark your final answer c) Give sound reasons for which loan you, personally, would take (answers may vary, so ? Show all work neatiy scoring on this part is based on the quality of your individual reasoning) Page 6 of6