Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

a) Borrow $10,200 from the First National Bank at a fixed rate of 12% per annum, simple interest. The loan would be repaid in equal monthly installments over a 3-yar (36 months) period.

b) Obtain a $10,200 installment loan requiring 36 monthly payments from the Store Manager's Credit Union at a 6.5% stated rate of interest. The add-on method would be used to find out the finance charges on this loan.

Compute the size of the monthly payments, the finance charges, and the APR on the two loans above. If Cory and Tisha decide to take out a loan and buy the car, which loan would you recommend to them and why?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M929031

Have any Question? 


Related Questions in Basic Finance

Once we recognize that product differentiation is the basis

"Once we recognize that product differentiation is the basis for much international trade, there are likely to be more winners and fewer losers in a country when the country shifts from no trade to free trade." There may ...

Prompt discuss government issued t-bills and munis consider

Prompt: Discuss government issued T-bills and munis. Consider in your paper the following criteria: Would you invest in government issued T-bills? Why or why not?  Are there specific munis you would or would not invest i ...

Prizes and the chances of winning in a sweepstakes are

Prizes and the chances of winning in a sweepstakes are given in the table below. Prize Chances $25,000,000 1 chance in 200,000,000 $450,000 1 chance in 200,000,000 $75,000 1 chance in 20,000,000 $20,000 1 chance in 4,000 ...

Consumer financial protection bureau as a result of the

Consumer Financial Protection Bureau: As a result of the Financial Reform Act of 2010, the Consumer Financial Protection Bureau was established and housed within the Federal Reserve. Explain the role of this bureau.

Using the liquidity preference theory explain why the

Using the liquidity preference theory, explain why the quantity demanded of money is inversely related to the interest rate. What is a liquidity trap?

How do pension funds lsquouse assets in their portfolioshow

How do pension funds ‘use' assets in their portfolios? How does this depend on the degree of maturity of the pension fund?

Annual report projectyou will be analyzing the following

Annual Report Project You will be analyzing the following firms whose SIC code is 1311: - Anadarko Petroleum - EOG Resources For these firms, download the most recent 10-K report for 2014, 2013, and 2012. You can downloa ...

Assignment1 describe the role that the winners curse may

Assignment 1. Describe the role that the "winner's curse" may play in the underpricing of IPOs. 2. a. Does a rights offer cause a share price decrease? Why or why not? b. How are existing shareholders affected by a right ...

Suppose that a study shows that 90 of people who have

Suppose that a study shows that 90% of people who have contracted Zika fever have mosquito bites prior to contracting the disease. Zika fever is rare; suppose only one in a million people have the disease. If you are bit ...

Suppose the economy is in short-run equilibrium at a level

Suppose the economy is in short-run equilibrium at a level of output that exceeds potential output. How would the economy self-adjust to return to long-run equilibrium?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate