suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans, each requiring regular monthly payments. Installment loan A: 3-year loan at 5.9% Installment loan B: 5-year loan at 6.4% a.- find the monthly payments and the total interest for loan A b.-find the monthly payments and the total interest for loan B c.- compare the two loans. which is more economical?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans, each requiring regular monthly payments.

Installment loan A: 3-year loan at 5.9%

Installment loan B: 5-year loan at 6.4%

a.- find the monthly payments and the total interest for loan A

b.-find the monthly payments and the total interest for loan B

c.- compare the two loans. which is more economical?

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