e. Which bank has the lower total interest, and by how much? United Bank v f. What is the difference in the monthly payments? $232.70 g. How many years of payments do you avoid if you decide to take out the shorter mortgage?
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- You want to buy a $190000 home. You plan to pay $19000 as a down payment, and take out a 15 year loan at 4.25% interest for the rest.a) What is the amount of the payment?$b) If the bank charges 2 points on the loan, what is the amount charged for points?$c) If the bank charges 2 points on the loan, what is the true interest rate?$ TVM SOLVERQ5. If you were opening a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or daily compounding? Why? Q6. Why should investors consider common stocks as an investment vehicle if they have a long-term time horizon? Q7. Is online grocery shopping cheaper? Q8. What can you realistically do to improve your income level?Q9. If you have too many credit cards, what should you do? Q.10 What is the formula for calculating your net worth?Calculate the CAT (total annual cost) for option 1 and then find which option is better to ask for a loan and explain why is it better. 1. Personal Loan MNL Bank 2.25% simple monthly interest rate 2. Savings Bank CAT= 30% 3. XYZ Bank CAT= 28.30% 4. 123 Bank CAT= 26.64%
- Optimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. Suppose the average rate paid by banks on savings accounts is 0.45% at a time when infialion is around 0 9% For the average saver, the real rate of interest on his or her savings is % (Round your response to two decimal places and use a minus sign if necessay.) Il banks expect that the rate of inflation in the coming year will be 3.9% and they want a real return of 8% on a certain category of loans, then the nominal rate they should charge borrowers on those loans is %. (Round your response to two decimal places) 11 the economy experiences an unexpectedly high rate of inflation, the group that would tend to benefit is O A. creditors (people or institutions that are owed money). O B. deblors (pcople or businesses who owe moncy). OC. both would benefit cgqually O D. neilher bencfits.You want to buy a $200000 home. You plan to pay $20000 as a down payment, and take out a 20 year loan at 5.25% interest for the rest. a) What is the amount of the payment? $ b) If the bank charges 1.5 points on the loan, what is the amount charged for points? $ c) If the bank charges 1.5 points on the loan, what is the true interest rate? $ Question Help: D Video Submit QuestionOptimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. Suppose the average rate paid by banks on savings accounts is 0.65% at a time when inflation is around 1.45%. For the average saver, the real rate of interest on his or her savings is %. (Round your response to two decimal places and use a minus sign if necessary.) If banks expect that the rate of inflation in the coming year will be 4.45% and they want a real return of 5.5% on a certain category of loans, then the nominal rate they should charge borrowers on those loans is %. (Round your response to two decimal places. If the economy experiences an unexpectedly high rate of inflation, the group that would tend to benefit is O A. debtors (people or businesses who owe money) O B. creditors (people or institutions that are owed money) O C. both would benefit equally. O D. neither benefits.
- < A friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is offering a 6.2% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $51 instead? b. How much money could you borrow today if you pay the bank $54 in one year? c. Should you loan the money to your friend or deposit it in the bank?A. what is the Monthly Payment ? what is the total interest paid ? B. time to pay off mortgage if extra $100 is added ? total interest saved ? I will rate thakn you!PA Use PMT= to determine the regular payment amount, rounded to the nearest dollar. In terms of paying less in interest, which is more economical for a $240,000 mortgage: a 30-year fixed-rate at 10% or a 20-year fixed-rate at -nt 9.5%? How much is saved in interest? Select the correct choice below and fill in the answer box within your choice. (Do not round until the final answer. Then round to the nearest thousand dollars.) OA. The 20-year 9.5% loan is more economical. The buyer will save approximately $ OB. The 30-year 10% loan is more economical. The buyer will save approximately $ in interest. in interest.
- Pls help on ur own.Suppose you take out a car loan that requires you to pay $8,000 now, $5,000 at the end of year 1, and $7,000 at the end of year 2. The interest rate is 5% now and increases to 9% in the next year. What is the present value of the payments?=t K A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is offering a 6.1% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $54 instead? b. How much money could you borrow today if you pay the bank $57 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $54 instead? If you deposit the money in the bank today you will have $ b. How much money could you borrow today if you pay the bank $57 in one year? You will be able to borrow $ today. (Round to the nearest cent.) c. Should you loan the money to your friend or deposit it in the bank? From a financial perspective, you should end of year. in one year. (Round to the nearest cent.) (Select from the drop-down menu.) ▼ as it will result in more money for you at theGive typing answer with explanation and conclusion Find the interest rate (or rates of return) in each of the following situations. Do not round intermediate calculations. Round your answers to the nearest whole number. You borrow $740 and promise to pay back $814 at the end of 1 year. % You lend $740 and receive a promise to be paid $814 at the end of 1 year. % You borrow $60,000 and promise to pay back $171,156 at the end of 8 years. % You borrow $11,000 and promise to make payments of $3,359.50 at the end of each of the next 5 years. %