Consider two potential loans with quarterly compounding and everything else being equal, but one loan (Loan A)

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Consider two potential loans with quarterly compounding and everything else being equal, but one loan (Loan A) has monthly payments while the other loan (Loan B) has quarterly payments. Which loan would have a smaller principal remaining after n years (assume n comes before the full repayment of the loan)?

Question 9 options:

They will have the same principal remaining.

Loan B

Impossible to determine without more information.

Loan A

Posted Date: May 19, 2024 12:01 PM

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Consider two potential loans with quarterly compounding and everything else being equal, but one loan (Loan A)

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