You plan to purchase a new house. To finance the purchase, two banks in the area offer 30-year mortgage loan for 80 perc

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answerhappygod
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You plan to purchase a new house. To finance the purchase, two banks in the area offer 30-year mortgage loan for 80 perc

Post by answerhappygod »

You plan to purchase a new house. To finance the purchase, two
banks in the area
offer 30-year mortgage loan for 80 percent of the RM650,000 of
the purchase house.
The ARB Bank charges 14.5 percent compounded monthly on its
mortgage loan. The
Trust Bank charges 14.2 percent compounded semiannually. Compute
the effective
annual return (EAR). Which bank you will choose?

do not use exel to answer this question , show all
workings
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