Question: 1. How much would Anita (a) Receive in initial loan proceeds (b) Be required to repay at maturity under the North Carolina State Bank loan?

1. How much would Anita
(a) Receive in initial loan proceeds
(b) Be required to repay at under the North Carolina State Bank loan?
2. Compute
(a) The finance charges
(b) The APR on the loan offered by North Carolina State Bank.
3. Compute
(a) The finance charges
(b) The APR on the loan offered by the National Bank of Chapel Hill.
How big a loan payment would be due at the end of two years?
4. Compare your findings in Questions 2 and 3, and recommend one of the loans to Anita. Explain your recommendation.
5. What other recommendations might you offer Anita regarding disposition of the loan proceeds?

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1 With the North Carolina State Bank discount interest loan a Anita would receive initial proceeds of 26400 calculated as follows Principal Amount 300... View full answer

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