Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ann is taking out an amortized loan for $79,000 to

Ann is taking out an amortized loan for $79,000 to open a small business and...

90.2K

Verified Solution

Question

Accounting

image
Ann is taking out an amortized loan for $79,000 to open a small business and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the small business loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) A bank has offered her a 9 -year small business loan at an annual interest rate of 10.2%. Find the monthly payment. (b) Her credit union has offered her a 10 -year small business loan at an annul interest rate of 10.4%. Find the monthly payment. (c) Suppose Ann pays the monthly payment each month for the full term. Which lender's small business loan would have the lowest total amount to pay off, and by how much? The total amount paid would be $ less than to the credit union. Bank The total amount paid would bes less than to the bank. Credit union

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students