Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a mortgage from a bank to buy the new house. ANZ bank offered Lisa the lending interest rate of 4.85% per year, compounding semi-annually. Commonwealth Bank offered her the lending rate of 4.83% per year, compounding monthly. By calculating EAR, identify which bank should Lisa choose
Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a mortgage from a bank to buy the new house. ANZ bank offered Lisa the lending interest rate of 4.85% per year, compounding semi-annually. Commonwealth Bank offered her the lending rate of 4.83% per year, compounding monthly. By calculating EAR, identify which bank should Lisa choose
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a mortgage from a bank to buy the new house. ANZ bank offered Lisa the lending interest rate of 4.85% per year, compounding semi-annually. Commonwealth Bank offered her the lending rate of 4.83% per year, compounding monthly. By calculating EAR, identify which bank should Lisa choose?
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