Her credit union has offered her a 8-year small business loan at an annual inter of 9.6%. Find the monthly payment. $0 Suppose Carmen pays the monthly payment each month for the full term
Her credit union has offered her a 8-year small business loan at an annual inter of 9.6%. Find the monthly payment. $0 Suppose Carmen pays the monthly payment each month for the full term
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Kk.328.
![(b) Her credit union has offered her a 8-year small business loan at an annual interest rate
of 9.6%. Find the monthly payment.
$0
(c) Suppose Carmen 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?
O Savings and loan association
The total amount paid would be $ less than to the credit union.
Credit union
The total amount paid would be s less than to the savings and loan association.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff7373726-0d35-46ca-aa27-97bcf9126f3a%2F94d1c8d6-9673-4b8b-b9f8-baded8ec3b01%2F4jr7fx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b) Her credit union has offered her a 8-year small business loan at an annual interest rate
of 9.6%. Find the monthly payment.
$0
(c) Suppose Carmen 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?
O Savings and loan association
The total amount paid would be $ less than to the credit union.
Credit union
The total amount paid would be s less than to the savings and loan association.
![Carmen is taking out an amortized loan for $88,000 to open a small business and is deciding 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.
(a) A savings and loan association has offered her a 10-year small business loan at an
annual interest rate of 9.6%. Find the monthly payment.
${
(b) Her credit union has offered her a 8-year small business loan at an annual interest rate
of 9.6%. Find the monthly payment.
$
(c) Suppose Carmen 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?
O Savings and loan association
The total amount paid would be less than to the credit union.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff7373726-0d35-46ca-aa27-97bcf9126f3a%2F94d1c8d6-9673-4b8b-b9f8-baded8ec3b01%2Fxmv3vj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Carmen is taking out an amortized loan for $88,000 to open a small business and is deciding 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.
(a) A savings and loan association has offered her a 10-year small business loan at an
annual interest rate of 9.6%. Find the monthly payment.
${
(b) Her credit union has offered her a 8-year small business loan at an annual interest rate
of 9.6%. Find the monthly payment.
$
(c) Suppose Carmen 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?
O Savings and loan association
The total amount paid would be less than to the credit union.
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