Is elise correct? would prefer one contract over the other

Reference no: EM133557898

Please provide clear calculations/expla nations, as indicated, for the following question. You can choose between two mortgage contracts: A. "You pay 2.50 percent APR paid monthly for the next 40 years". B. "You pay 7.50 percent APR paid quarterly for the next 40 years". Elise argues that "Under contract A you'd pay 25% twelve times per year, so that's 30.0% per year, and under contract B you'd pay 7.5% but only four times per year, so that's again 30.0% per year, thus the two controcts are equally good". Is Elise correct? Would prefer one contract over the other, and in that case, which contract would you prefer? Why?

Reference no: EM133557898

Questions Cloud

What the filing requirements would be if martin were to die : what might happen if he were to die first, including what the filing requirements would be if Martin were to die. Further notes from the meeting are

How do the statistics computed in the half-periods differ : How do the statistics computed in the 'half-periods' differ and how do they differ from those obtained from the whole period? Based on your results, what kinds

Difference between information technology-information system : Why does knowing the difference between information technology and information systems help you avoid common mistakes?

Concepts of the importance of organizational behavior : To help you to better understand the concepts of the importance of Organizational Behavior, Organizations as Open Systems.

Is elise correct? would prefer one contract over the other : Is Elise correct? Would prefer one contract over the other, and in that case, which contract would you prefer? Why?

How much more will 1,500 shares cost in year 6 than year 5 : Assuming that the cost of the shares will go up 6% in year 5 and another 8% in Year 6. How much more will 1,500 shares cost in Year 6 than Year 5

Creating a consumer decision journey map for macbook pro : I hope this message finds you well. I am writing to request your assistance in creating a comprehensive consumer decision journey map for the Macbook Pro.

How much net profit they have made as a result : If someone had bought 2,120 shares at the end of Year 2 and sold these shares at the end of Year 4, how much net profit they have made as a result of their

What price will the bond trade for : what price will the bond trade for? The new price of the bond will be $D. (Round to the nearest cent.)

User Account

All Pages