You have the choice between 2 loans. Option A is a 15 year loan at 6.5% with a 2 point fee. Option B is a 20 year loan at 7% with a 2.5% fee.
Which loan should you take and why? Support the answer with both math and logic
You have the choice between 2 loans. Option A is a 15 year loan at 6.5%...
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $30 comma 000 loan. Option 1: a 30-year loan at an APR of 6.15%. Option 2: a 15-year loan at an APR of 5.75%. Find the monthly payment for each option. The monthly payment for option 1 is $ . The monthly payment for option 2 is $ .
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $30,000 loan. Option 1 : a 30-year loan at an APR of 5.65%. Option 2: a 15-year loan at an APR of 5.25%. Find the monthly payment for each option The monthly payment for option 1 is S The monthly payment for option 2 is $ (Do not round...
Compare the monthly payments and total loan costs for the following pairs of loan aplions. Assume that both loans are fed rate and have the same closing costs You need a $170 000 loan Option 1 a 30 year loan at an APR of 7% Option 2 a 15 year loan at an APR 65% Find the monthly payment for each option The monthly payment for option is The monthly payment for option is (Do not found the final answer...
Consider two loans with one-year maturities and identical face values: a(n) 7.9% loan with a 1.03% loan origination fee and a(n) 7.9% loan with a 4.7 % (no-interest) compensating balance requirement. What is the effective annual rate (EAR) associated with each loan? Which loan would have the highest EAR and why? ns The EAR in the first case is %. (Round to one decimal place.) The EAR in the second case is %. (Round to one decimal place.) Which loan...
Consider two loans with one-year maturities and identical face values ain) 83% loan with a 1.04% loan origination fee and a(n) 8.3% loan with a 4.9% (no interest) compensating balance requirement. What is the effective annual rate (EAR) associated with each loan? Which loan would have the highest EAR and why? The EAR in the first case is (Round to one decimal place) The EAR in the second case is (Round to one decimal place) Which loan would have the...
A house is for sale for $360,000. You have a choice of two 25-year mortgage loans with monthly payments: (1) if you make a down payment of 10%, you can obtain a loan with a 6% rate of interest or (2) if you make a down payment of 20%, you can obtain a loan with a 5% rate of interest. What is the effective annual rate of interest on the additional 10% of house value borrowed on the first loan?...
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $170 comma 000 loan. Option 1: a 30-year loan at an APR of 7%. Option 2: a 15-year loan at an APR of 6.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ nothing. The monthly payment for option 2 is $ nothing....
Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $ 60,000 loan. Option 1: a 30-year loan at an APR of 6.15% Option 2: a 15-year loan at an APR of 5.75%. 1-The monthly payment for option 1 is: 2- the monthly payment for option 2 is: 3- loan cost for option 1 is: 4- loan coast for...
Question6 Rashed plans to take a loan of 100,000 AED to buy a car, the bank available loan options are: Option 1: Total amount owed is due with a single payment at the end of year 10 with 7.5 % simple interest per year. Option 2: Total amount owed is due with a single payment at end of year 8 with 6.5% annually compound interest. Which option should Rashed choose? Match the closest correct answers for the below questions The...
You have $90,000 in student loans with an annual payment of $10,500 and an annual interest of 7%. - How long would it take you to pay off the loan? . What would be the annual payments should you want to pay off the loan in 10 years? - Why or why not would you want to make the larger payments?