Compute the apr and ear of both loans

Assignment Help Business Management
Reference no: EM131090060

You decide to borrow $100,000 with a choice of two 4-year loans:

Plan A requires quarterly payments of $3,100 for the first year, $7,100 for the second and third year, and $11,100 for the fourth year.

Plan B requires quarterly payments of $11,000 for the first year, $7,000 for the second and third year, and $3,000 for the fourth year.

1.) Compute the APR and EAR of both loans

2.) Which loan should you take and why?

Reference no: EM131090060

Questions Cloud

Maximum constant amount : Whats the maximum constant amount he can with draw for each of the remaining 28 years, starting June 6, 2028 if the interest rate continues to stay 5%?
Create the analog waveforms required to produce high-quality : The last step is to write a main program that inputs from three binary switches and performs the three public functions
Abusive and violent relationships : EACH DISCUSSION HAS TO HAVE 150 WORDS NO LESS THAN THAT. PLEASE DONT WRITE ALL THE QUESTIONS TOGETHERE SEPERATE THEM NEED BY TOMORROW.
History of paying dividends equal : EPS1=$5. It has a history of paying dividends equal to 20% of earnings. The expected cost of equity is 15% per year, and the expected ROE (return on equity) on the firm's future investments is 17% per year. Using the constant growth rate DDM model..
Compute the apr and ear of both loans : 1.) Compute the APR and EAR of both loans 2.) Which loan should you take and why?
Write data required versus write data available : Write data required versus write data available
What is the garbled number : On the evenings financial news broadcast, the reporter states "Last month prices fell by $^#^#& percent. This is an annual rate of deflation of 6.5 percent." What is the garbled number?
Find the width of the river : Find all points of intersections of the 2 circles defined by the equations - Find the width of the river - what is the height of the well?
Fill in the following table that specifies : When a tape head is ready, the controller will signal that it is ready to accept all 256 bytes. At this time, the tape interface chip is ready to transfer as fast as possible all 256 bytes from the memory buffer at 0x1234 to the tape.

Reviews

Write a Review

Business Management Questions & Answers

  Inter departmental communication

If I were to picture myself as a new manager hired into a failing division in a Corporation. The item line is outdated and losing market share and competition for corporate funding is fierce.

  Motivation and motivational theory

To motivate someone, match a motivational theory that will identify what makes that person tick. After identifying this person's motivational characteristics,

  Discuss the various levels of regional economic integration

What do you mean by Regional economic integration? Discuss the various levels of regional economic integration?

  In uncommon service-the frei and morris

The authors argue that a great service organization needs to get both right, the service design and the culture that animates it. Both must be pointing in the same direction, toward the outputs you've identified as critical to your organization's ..

  What is the significance of having set targets

What is the significance of having set targets? Develop an outline for the steps involved in setting targets for program objectives.

  Reframing innovation as a strategy

Write down the primary characteristic of the reframing innovation strategy.

  Innovation to shape organizational culture and processes

Assess what leaders of innovation do to shape organizational culture and processes.

  Explain the features and benefits of the products

Choose one product and one service which an organisation in the service industry might offer to customers. Describe how you would accurately explain the features and benefits of the products/ services you chose

  Opinion of the manager approach

What is your opinion of the manager's approach? How does it compare with the Deming philosophy? How might the analysis of these data help the manager to understand the variation in the system? Do you think all of the variation stems from common cau..

  Question related to project communication plango to an

question related to project communication plango to an internet search engine e.g. google and type in project

  Describe the transactional and transformational leadership

Describe the transactional and transformational leadership styles and Explain why these leadership styles are relevant for sales organizations.

  Considering cumulative the minimum wage

Presume you are the owner of a small café that employs fifteen people ten of whom are front-line, unskilled workers as well as currently paid the minimum wage

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd