77 926
Assignments Done
Successfully Done
In August 2019

Answer to Question #32951 in Economics of Enterprise for Tony

Question #32951
The following three one-year “discount” loans are available to
Loan A: $120,000 at a 7 percent discount rate
Loan B: $110,000 at a 6 percent discount rate
Loan C: $130,000 at a 6.5 percent discount rate
a. Determine the dollar amount of interest you would pay on
each loan and indicate the amount of net proceeds each loan
would provide. Which loan would provide you with the most
upfront money when the loan takes place?
b. Calculate the percent interest rate or effective cost of each
loan. Which one has the lowest cost?
Expert's answer

Not answered

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions