Question: We know that how you pay back the loan is as important as how much you borrow. You are borrowing $103,746 for 6 years at
| We know that how you pay back the loan is as important as how much you borrow. You are borrowing $103,746 for 6 years at 4.35% PY. | ||||
| I am looking for two different methods using COMPOUND interest. ONE OF THE SOLUTION MUST BE A TABLE (see Chapter 2 section 4 of text) | ||||
| Show two DIFFERENT ways and calculate the results that demonstrate financial equivalence for this problem. | ||||
| Do not show me simple and compound interest. DO NOT simply change the compounding term (IE. A daily, mothly, yearly calculation) | ||||
| Do not show me two calcualtions that give the same solution. (IE Excel formula and hand calcualtion) | ||||
| How much will you pay over the life of the loan in each way? WHICH ONE costs you the LEAST amount of interest, WHY? | ||||
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