Jacky takes out a 5-year personal loan from the bank today. Jacky will make 10 equal half-yearly
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Jacky takes out a 5-year personal loan from the bank today. Jacky will make 10 equal half-yearly repayments including the principal and the interest (P&I) starting in 6 months. The interest rate is 7% p.a. compounded half-yearly. Which of the following would help Jacky reduce the total repayment?
A. Make 60 equal monthly P&I repayments starting in 1 month.
B. Make a single repayment at the end of year 5.
C. Repay interest only for the first 2 years and repay P&I for the following 3 years.
D. Make 5 equal yearly P&I repayments starting in 1 year.
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078025778
17th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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