Hi, i am currently taking finance 301 for my university requirement class... and i have a homework assignment due tomorrow, i need to some on one of the question i have been stuck on...can anyone teach me how to do it step by step?? thanks!
You need $25,000 today and have decided to take out a loan at 7 percent for
two years. Which one of the following loans would be the least expensive? Assume all
loans require quarterly payments and that interest is compounded on a quarterly basis.
1) Amortized loan with equal principal payments
2) Amortized loan with equal payments
You need $25,000 today and have decided to take out a loan at 7 percent for
two years. Which one of the following loans would be the least expensive? Assume all
loans require quarterly payments and that interest is compounded on a quarterly basis.
1) Amortized loan with equal principal payments
2) Amortized loan with equal payments