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ziro4ka [17]
1 year ago
10

The best bolandian bank's one year regular is 3.0%, but it offers discounted rates of 2.6% for $1000 and 2.5% for $2000. what is

the minimum loan for which the total cost to have the discounted rate with the higher fee than the other discount or regular rate?
Advanced Placement (AP)
1 answer:
daser333 [38]1 year ago
3 0

Sometimes, a financial institution will provide what's known as a reduction mortgage: on this case, hobby is deducted on the time the mortgage is obtained.

For example, if we comply with pay a financial institution $9,000 in 2 years at 6% easy discount, the financial institution will compute the hobby: I = Prt = 9000(0.06)(2) = 1080, then deduct this from the total. As we alluded to, the issue that first-class determines whether or not a borrower's funding on an adjustable-charge mortgage is going up or down is the modern-day market. The market's situation extensively affects the charge of funding. The maximum not unusual place charge adjustment length is one year, however they variety from six months to a few years. In the identical manner that the mortgage's hobby charge is adjusted periodically to mirror adjustments withinside the index, the month-to-month loan fee is adjusted at sure periods to mirror adjustments withinside the mortgage's hobby charge.

Learn more about mortgage here-

brainly.com/question/8084409

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