What the payment on the credit union loan would be

Reference no: EM132073626

Question: Rico needs approximately $2,500 to buy a new computer. A two-year unsecured loan through the credit union is available for 12.00 percent interest. The current rate on his revolving home equity line is 8.75 percent, although he is reluctant to use it. Rico is in the 15 percent federal tax bracket and the 5.75 percent state tax bracket. Which loan should he choose? Why? Regardless of the loan chosen, Rico wants to pay off the loan in 24 months. Calculate the monthly payments for him, assuming both loans use the simple interest calculation method.

The after-tax cost of the home equity loan is ?

The payment on the credit union loan would be?

The payment on the home equity loan would be?

The savings from the difference in payment over the life of the loan is?

The tax savings over the life of the home equity loan is?

The total savings over the life of home equity loan is?

Reference no: EM132073626

Questions Cloud

Define what is the required return on unilever stock : A portfolio has two assets; A & B. Asset A has an expected return of 5% and a standard deviation of return of 2%. Asset B, on the other hand, has an expected.

Lucid and accurate writing : These experts are known for their lucid and accurate writing which also assists to develop strong accounting concepts among the students.

What is company cost of equity capital : What is the company’s cost of equity capital? What would the cost of equity be if the debt–equity ratio were 2?

How many shares of common stock are outstanding : Hermann Enterprises reported the following information at December 31: Retained earnings 17,000. How many shares of common stock are outstanding

What the payment on the credit union loan would be : Rico needs approximately $2,500 to buy a new computer. A two-year unsecured loan through the credit union is available for 12.00 percent interest.

Spatial and functionality operational requirements : Write a 1500 word essay in which you analyse the spatial and functionality operational requirements for the three different conference

Discuss the accomplishments in the renaissance era : Discuss the accomplishments, education, and family life about the following women in the renaissance era: Catherine de' Medici, Isabella d' Esta.

Calculate the amount of paid-in capital from treasury stock : The cost method is used to account for treasury stock. Calculate the amount of paid-in capital from treasury stock transactions resulting from the above events

What is the cross-rate in terms of yen per pound : Suppose the Japanese yen exchange rate is ¥76 = $1, and the British pound exchange rate is £1 = $1.55. What is the cross-rate in terms of yen per pound?

User Account

All Pages