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5. A five year loan made on January 1, 2020 is amortized with 60 level payments starting February 1, 2020. Interest is a
Posted: Sat Nov 27, 2021 5:21 pm
by answerhappygod
- 5 A Five Year Loan Made On January 1 2020 Is Amortized With 60 Level Payments Starting February 1 2020 Interest Is A 1 (69.79 KiB) Viewed 65 times
5. A five year loan made on January 1, 2020 is amortized with 60 level payments starting February 1, 2020. Interest is at i(12) = 0.10. You are given some special options for loan repayment by the issuer of your loan, who looks a lot like Al Pacino for some strange reason: A. Pay normally, but something bad will happen if you default. B. Continue these payments, then on October 15, 2023 you will give a 1000 gift to your loan issuer's daughter for her wedding, and all is forgiven due to this generous gesture. C. Pay twice the amount for 2 years, then you'll owe the issuer a favor. You won't know when this favor will be asked, or what the favor will be. Which is the most fiscally intelligent choice?