Question: Enter increase, decrease or stay the same in each of the blanks. You have agreed to lend me $5000. I am calculating my payment and

Enter increase, decrease or stay the same in each of the blanks.

You have agreed to lend me $5000. I am calculating my payment and the total amount of interest I pay over the life of the loan. If you agree to lower the interest rate, my payment will _________ and the total amount of interest I pay over the life of the loan will ____________ . If you agree to make the loan period longer, my payment will __________ and the total amount of interest I pay over the life of the loan will ____________ .

Which loan would you prefer? A which charges 9.5% APR compounded monthly or B which charges 10% APR compounded semi-annually (twice per year)? Why? (You must provide justification; guessing the right answer will only earn you 1/2 credit.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Enter increase, decrease or stay the same in each of the blanks. You have agreed to lend me - $ 5 0 0 0 . I am calculating my payment and the total amount of interest I pay over the life of the loan....

Enter increase, decrease or stay the same in each of the blanks. You have agreed to lend me $5000. I am calculating my payment and the total amount of interest I pay over the life of the loan. If you...

Enter increase, decrease or stay the same in each of the blanks. You have agreed to lend me $5000. Iam calculating my payment and the total amount of interest | pay over the life of the loan. If I...

and Submit. Question& of 15 Question 8 points Enter increase, decrease or stay the same in each of the blanks You have agreed to lend me $5000. 1 am calioulating my payment and the total amount of...

3-5 Bach Company Topic: Link between statement of financial position/balance sheet, income statement and statement of cash flows - notion of management 1 - Introduction Bach Company is used in a...

Cash LO2 BRIEF EXERCISE 10.1 Jacobs Company borrowed $1,000,000 on a one-year, percent note payable from the local bank on 1 April. Interest was paid quarterly, and the note was re- paid one year...

1.Country A is experiencing a recessionary gap. Draw a correctly labeled AD-AS model showing this. Label the recessionary equilibrium price level as PL and current output as Y. Draw the corresponding...

I need two ratios provided based on the financial statement of a company (fullfinancial attached). I need the price-earnings ratio (the formula of price per share divided by earnings per share) and...

Please Provide instructions to complete tasks in Excel. Thank you Step 3: FORMAT A ONE-VARIABLE DATA TABLE You want to format the results to show dollar signs and to display rounded values to the...

1. Assume the role of a prospective buyer for these two businesses. How would you conduct the due diligence necessary to determine whether they would be good investments? 2. Do you notice any red...

Statistics and Probability A standard (and shuffled) deck of 52 cards is placed in a single stack, and a dealer begins revealing cards on top of the deck one at a time. we say that a "match" occurs...

what was the purpose of the british's army's march on Concord, Massachusetts in April 1 7 7 5 ?

2023 1040 form 1.Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent...