ADD-ON LOANS vs SIMPLE INTEREST LOANS. You are borrowing $500,000 on a 30 year, 5.5% interest loan to buy a property. 18a) What will the total interest be if it was an add-on interest loan? 18b) How much would the monthly payment be (for 30 years) if it was an add- on interest loan? 18c) What will the total interest be if it was a simple interest amortized loan? 18d) How much would be the monthly payment (for 30 years) if it was a simple interest amortized loan?
ADD-ON LOANS vs SIMPLE INTEREST LOANS. You are borrowing $500,000 on a 30 year, 5.5% interest loan to buy a property. 18a) What will the total interest be if it was an add-on interest loan? 18b) How much would the monthly payment be (for 30 years) if it was an add- on interest loan? 18c) What will the total interest be if it was a simple interest amortized loan? 18d) How much would be the monthly payment (for 30 years) if it was a simple interest amortized loan?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 9FPE: Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five...
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Question
ADD-ON LOANS vs SIMPLE INTEREST LOANS. You are borrowing
$500,000 on a 30 year, 5.5% interest loan to buy a property.
$500,000 on a 30 year, 5.5% interest loan to buy a property.
18a) What will the total interest be if it was an add-on interest loan?
18b) How much would the monthly payment be (for 30 years) if it was an add-
on interest loan?
18c) What will the total interest be if it was a simple interest amortized loan?
18d) How much would be the monthly payment (for 30 years) if it was a simple
interest amortized loan?
18b) How much would the monthly payment be (for 30 years) if it was an add-
on interest loan?
18c) What will the total interest be if it was a simple interest amortized loan?
18d) How much would be the monthly payment (for 30 years) if it was a simple
interest amortized loan?
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