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nalin [4]
3 years ago
11

How would a bigger down payment be beneficial to borrowers?

Mathematics
2 answers:
blsea [12.9K]3 years ago
3 0

Answer:

A bigger down payment is money paid toward principal, interest free, which also decreases the amount paid monthly.

lesya692 [45]3 years ago
3 0

Answer:

This would be beneficial in the way that they wont have to continuously pay lots of money for it monthly, and over time you can build up more money so that you wont be in debt.

Step-by-step explanation:


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steposvetlana [31]

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In order to determine the loan option that minimizes loan payment, the future value of both loan options has to be determined.

FV = P (1 + r)^nm

FV = Future value  

P = Present value  

R = interest rate  

m = number of compounding

N = number of years  

<em><u>First loan option </u></em>

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<em><u>Second loan option </u></em>

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A similar question was answered here: brainly.com/question/23082103

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