Analyzing Interest Rates on a Mortgage Colleen and Bill
Chapter 6, Problem 54(choose chapter or problem)
Analyzing Interest Rates on a Mortgage Colleen and Bill have just purchased a house for $650,000, with the seller holding a second mortgage of $100,000.They promise to pay the seller $100,000 plus all accrued interest 5 years from now. The seller offers them three interest options on the second mortgage: (a) Simple interest at 12% per annum (b) interest compounded monthly (c) interest compounded continuously Which option is best;that is, which results in the least interest on the loan?
Unfortunately, we don't have that question answered yet. But you can get it answered in just 5 hours by Logging in or Becoming a subscriber.
Becoming a subscriber
Or look for another answer