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You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $6,200. You plan to put down $1,400 and borrow $4,800. You will need to make annual payments of $1,100 at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline of the loan from your perspective. (Select the best choice below.) O A. Year 1 3 4 Cash Flow $4,800 - $1,100 $1,100 - $1,100 -$1,100 - $1,100 O B. Year 1 3 4 Cash Flow - $1,400 $1,100 $1,100 $1,100 $1,100 $1,100 OC. Year Cash Flow - $4,800 $1.100 $1,100 $1,100 $1,100 $1,100 O D. Year 1 Cash Flow $6,200 -$1,100 -$1,100 -$1,100 -$1,100 -$1,100

You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $6,200. You plan to put down $1,400 and borrow $4,800. You will need to make annual payments of $1,100 at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline of the loan from your perspective. (Select the best choice below.) O A. Year 1 3 4 Cash Flow $4,800 - $1,100 $1,100 - $1,100 -$1,100 - $1,100 O B. Year 1 3 4 Cash Flow - $1,400 $1,100 $1,100 $1,100 $1,100 $1,100 OC. Year Cash Flow - $4,800 $1.100 $1,100 $1,100 $1,100 $1,100 O D. Year 1 Cash Flow $6,200 -$1,100 -$1,100 -$1,100 -$1,100 -$1,100

Personal Finance
Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter7: Credit Cards And Consumer Loans
Section: Chapter Questions
Problem 2LTAI
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You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $6,200. You plan to put down $1,400 and borrow $4,800. You will need to make annual payments of $1,100 at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline of the loan from your perspective. (Select the best choice below.) O A. Year 1 2 3 4 Cash Flow $4,800 - $1,100 -$1,100 - $1,100 - $1,100 - $1,100 O B. Year 1 2 3 4 Cash Flow - $1,400 $1,100 $1,100 $1,100 $1,100 $1,100 O C. Year 1 2 3 4 Cash Flow - $4,800 $1,100 $1,100 $1,100 $1,100 $1,100 O D. Year 1 2 3 4 Cash Flow $6,200 - $1,100 -$1,100 - $1,100 - $1,100 - $1,100
Transcribed Image Text:You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $6,200. You plan to put down $1,400 and borrow $4,800. You will need to make annual payments of $1,100 at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline of the loan from your perspective. (Select the best choice below.) O A. Year 1 2 3 4 Cash Flow $4,800 - $1,100 -$1,100 - $1,100 - $1,100 - $1,100 O B. Year 1 2 3 4 Cash Flow - $1,400 $1,100 $1,100 $1,100 $1,100 $1,100 O C. Year 1 2 3 4 Cash Flow - $4,800 $1,100 $1,100 $1,100 $1,100 $1,100 O D. Year 1 2 3 4 Cash Flow $6,200 - $1,100 -$1,100 - $1,100 - $1,100 - $1,100
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