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amm1812
3 years ago
12

Yvette is considering taking out a loan with a principal of $16,200 from one of two banks. Bank F charges an interest rate of 5.

7%, compounded monthly, and requires that the loan be paid off in eight years. Bank G charges an interest rate of 6.2%, compounded monthly, and requires that the loan be paid off in seven years. How would you recommend that Yvette choose her loan?
Business
2 answers:
nikitadnepr [17]3 years ago
8 0

Answer:

B

Explanation:

zhannawk [14.2K]3 years ago
7 0
<span>Yvette should choose Bank F’s loan if she wants more about lower monthly payments, and she should choose Bank G’s loan if she wants more about the lowest lifetime cost.
</span>
These are the calculations for each bank.

BANK F:
Annual Payments=<span>$210.53
Total Interest=</span><span>$4,011.13

BANK G:
Annual Payments=</span><span>$238.21
Total Interest=</span><span>$3,810.05</span>
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2. The higher after tax real gain is for Stephanie losing 35% of her income

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Explanation

The inflation rate is not considered in the calculation because it's constant for both parties.

4 0
3 years ago
Marlin Steel Wire Products is a manufacturer of commodity wire products out of Baltimore, MD. Marlin has many rivals based in Ch
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Answer:

<em>Focus Strategy</em>

Explanation:

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4 years ago
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Answer:

True

Explanation:

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Umnica [9.8K]

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A. Would be as useful to a business which makes sales only on a credit basis, as it is to a business making sales for cash.

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