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a) Borrow $10,200 from the First National Bank at a fixed rate of 12% per annum, simple interest. The loan would be repaid in equal monthly installments over a 3-yar (36 months) period.
b) Obtain a $10,200 installment loan requiring 36 monthly payments from the Store Manager's Credit Union at a 6.5% stated rate of interest. The add-on method would be used to calculate the finance charges on this loan.
Compute the size of the monthly payments, the finance charges, and the APR on the two loans above. If Cory and Tisha decide to take out a loan and buy the car, which loan would you recommend to them and why?
Company M has outstanding 400 shares of common stock of which A, B, C & D each own 100 shares or 25%. No stock is considered constructively owned by A, B, C or D under section 318.
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