All else equal, when deciding between two loan offers the loan that should be accepted is the one: With the most frequent compounding period. With the lowest annual percentage rate. With the least frequent compounding period. With the lowest stated interest rate. With the lowest effective annual rate.
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1)I need help with finance homework questions asap please. Multiple choice question.
All else equal, when deciding between two loan offers the loan that should be accepted is the one:
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- pls refer to the image attached, 1. suppose that you have the capacity to pay, would you rather borrow a loan that is amortized monthly, or one that is amortized quarterly? 2. what is your considerations when availing a loan? (quantitative or qualitative considerations) Discuss.Choose the best answer from the choices provided. As a loan is paid off, the monthly payment increases debt and interest portions do not change each interest period interest potion of the fixed payment increases debt portion of the fixed payment increasesSuppose that you have the capacity to pay, would you rather borrow a loan that is amortized monthly or one that is amotized quarterly? what are your considerations when availing a loan (qualitative or quantitative) discuss.
- You are considering taking out a 15-year loan versus a 30-year loan for a home. Explain what the pros and cons of both loan types are. Be sure to add appropriate detail to receive full credit. BIUS IE 블 Insert Formula X₂ X² 三星EWhich of the following statement is most correct? When solving a problem involving an annuity dueyou must select the END model on your financial calculator When using a financial calculatorcash outflows generally have to be entered as negative numbers because a financial calculator sees money leaving your hands The present value of a single future sum of money is POSITIVELY related to both the number of years until payment is received and the discount rate In the loan amortization tablethe payment is constant, the interest payment is increasing and the principals are declining.2) I need help with finance homework questions asap, Multiple choice question. Which of the following is correct regarding the APR? The APR is the rate which lenders are required to disclose. The APR is greater than the effective annual rate. The APR formula for rate disclosure is [1 + (r/m)]m-1. The APR considers all the effects of compounding. The APR is best used to compare offers from various lenders.
- 6. Calculating simple interest and APR on a single-payment loan You are taking out a single-payment loan that uses the simple interest method to compute the finance charge. You need to figure out what your payment will be when the loan comes due. The equation to calculate the finance charge is: FsFs = P r t In the equation, FsFs is the finance charge for the loan. What are the other values? P is the amount of the loan. r is the stated rate of interest. t is the term of the loan in . You’re borrowing $4,000 for a year and a half with a stated annual interest rate of 10%. Complete the following table. (Note: Round your answers to the nearest dollar.)Answer the following questions correctly and show your Complete Solution. a. 3 1/5% is equivalent to b. Find the actual time and approximate time from October 5, 2020 to June 30, 2021 c. Which of the following are NOT true?I. Principal is the money given or paid invested in the origin dateII. Origin date is a date on which money is paid by the borrower.III. Interest is an amount or earned for the use of the moneyIV. Simple Interest is an interest that is computed on the principal and then added to it.1. In a loan amortization schedule, interest payments for each period would most probably a. Increase overtime c. Remain the same b. Decrease overtime d. There are no interest payments in the schedule 2. The formula (1 + i)n is also called a. present value factor for lump-sum payment b. future value factor for lump-sum payment c. present value factor for ordinary annuity d. future value factor for ordinary annuity 3. An increase in the present value may be caused by a. increase in the discount rate b. decrease in the discount rate c. discount rate does not affect the present value d. none of the above 4. Interest payments that are based on the original principal and previous interest recognized is based on a. present value c. simple interest rate b. future value d. compound interest rate 5. The time value of money suggest that a peso received today is worth a peso received in the future. a. less than c. the same as b. more than d. none of the above
- Suppose you are shopping for a mortage and the lender presents you with long menu on loan options. For each option, there is a discount point charged at an interest rate given. The amount of the point ranges anywhere from -2% to 3%. When would it be optimal for you select a loan with a discount point of 3%? Group of answer choices 1) Only when the point is equal to the effective borrowing cost 2) Never 3) Only with ARM 4) If you have a very short holding period 5) If you have a very long holding periodWatch the Mathematics of Finance video and then answer the question given below. Simple interest loans are generally used for which type of loan? Click here to watch the video. Choose the correct description of a simple interest loan. A. Home Mortgage loans B. Short term loans of less than a year C. Car loans D. Long term loans of a year or moreConsider a loan repayment plan described by the following initial value problem, where the amount borrowed is B(0) = $40,000, the monthly payments are $600, and B(t) is the unpaid balance of the loan. Use the initial value problem to answer parts a through c. B' (+) =0.03B - 600, B(0) = 40,000 a) Find the solution of the initial value problem and explain why B is an increasing solution. B(t) = Why is B an increasing function? O A. The function is increasing because it is an exponential function with a positive coefficient and a negative exponent. O B. The function is increasing because it is an exponential function with a positive coefficient and a positive exponent. O C. The function is increasing because it is an exponential function with a positive exponent. O D. The function is increasing because it is an exponential function with a positive coefficient. b) What is the most that you can borrow under the terms of this loan without going further into debt each month? The…