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Unformatted text preview: Explain which of the two options below results in a lower balance after 6 months on a debt of $1000. 1. Annual simple interest of 12% applied at the end of the 6 months. 2. A monthly interest rate of 1% applied at the end of each month and before the start of the next month. Discuss why the two methods result in different results. Discussion Question 2: You need to get a loan from the bank to buy a new car and your bank is offering two options. One option charges a lower monthly payment than the other option but it takes longer to pay off the loan. Discuss which option you would take and why. When might you take the other option?...
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This note was uploaded on 11/15/2011 for the course MATH MM255 taught by Professor Douglascopeland during the Fall '11 term at Kaplan University.
- Fall '11