Carissa wishes to borrow $280,000. Lender A qualifies her for a rate of 4.59% over a 30-year term, ar Lender B will give her 3.2% for a 20-year loan. Excluding taxes, insurance and all other charges, find t amount of the loan payment for each. Round your answer to the nearest whole dollar.

Carissa wishes to borrow $280,000. Lender A qualifies her for a rate of 4.59% over a 30-year term, ar Lender B will give her 3.2% for a 20-year loan. Excluding taxes, insurance and all other charges, find t amount of the loan payment for each. Round your answer to the nearest whole dollar.

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

Section: Chapter Questions

Problem 1PS

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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Carissa wishes to borrow $280,000. Lender A qualifies her for a rate of 4.59% over a 30-year term, and
Lender B will give her 3.2% for a 20-year loan. Excluding taxes, insurance and all other charges, find the
3.
amount of the loan payment for each. Round your answer to the nearest whole dollar.

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