You plan to purchase a new house. To finance the purchase, two banks in the area offer 30-year mortgage loan for 80 perc
Posted: Sun Apr 17, 2022 6:20 pm
- You Plan To Purchase A New House To Finance The Purchase Two Banks In The Area Offer 30 Year Mortgage Loan For 80 Perc 1 (36.5 KiB) Viewed 23 times
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? (6 marks)