Solution-Compute the apr and ear of both loans

Compute the apr and ear of both loans

Assignment Help Business Management

Reference no: EM131090060

You decide to borrow $100,000 with a choice of two 4-year loans:

Plan A requires quarterly payments of $3,100 for the first year, $7,100 for the second and third year, and $11,100 for the fourth year.

Plan B requires quarterly payments of $11,000 for the first year, $7,000 for the second and third year, and $3,000 for the fourth year.

1.) Compute the APR and EAR of both loans

2.) Which loan should you take and why?

Reference no: EM131090060

Questions Cloud

Maximum constant amount : Whats the maximum constant amount he can with draw for each of the remaining 28 years, starting June 6, 2028 if the interest rate continues to stay 5%?

Create the analog waveforms required to produce high-quality : The last step is to write a main program that inputs from three binary switches and performs the three public functions

Abusive and violent relationships : EACH DISCUSSION HAS TO HAVE 150 WORDS NO LESS THAN THAT. PLEASE DONT WRITE ALL THE QUESTIONS TOGETHERE SEPERATE THEM NEED BY TOMORROW.

History of paying dividends equal : EPS1=$5. It has a history of paying dividends equal to 20% of earnings. The expected cost of equity is 15% per year, and the expected ROE (return on equity) on the firm's future investments is 17% per year. Using the constant growth rate DDM model..

Compute the apr and ear of both loans : 1.) Compute the APR and EAR of both loans 2.) Which loan should you take and why?

Write data required versus write data available : Write data required versus write data available

What is the garbled number : On the evenings financial news broadcast, the reporter states "Last month prices fell by $^#^#& percent. This is an annual rate of deflation of 6.5 percent." What is the garbled number?

Find the width of the river : Find all points of intersections of the 2 circles defined by the equations - Find the width of the river - what is the height of the well?

Fill in the following table that specifies : When a tape head is ready, the controller will signal that it is ready to accept all 256 bytes. At this time, the tape interface chip is ready to transfer as fast as possible all 256 bytes from the memory buffer at 0x1234 to the tape.

User Account

All Pages

Compute the apr and ear of both loans

Reference no: EM131090060

Reference no: EM131090060

Questions Cloud

Reviews

Write a Review

Business Management Questions & Answers

Caselet on michael porter’s value chain management

Mountain man brewing company

Mountain man brewing company

Analysis of the case using the doing ethics technique

Affiliations and partnerships

Innovation-friendly regulations

Effect of regional and corporate cultural issues

Structure of business plan

Identify the purposes of different types of organisations

Entrepreneur case study for analysis

Forecasting and business analysis

Educational instructional leadership

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT