62 467
Assignments Done
98,8%
Successfully Done
In June 2018

Answer to Question #33471 in Other Math for Summer

Question #33471
The following three one-year “discount” loans are available to
you:
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

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!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions