(1) You have three different loan offers, which you can get from three different banks. You plan to borrow $8000.
Bank1 offers 8% with payments at the end of the month for 24 months.
Bank2 offers 7% with payments at the end of the month for 36 months.
offers 9% with payments at the end of the month for 48 months.
What is your monthly payment for each of the three options?
What is the total interest you will pay under each of the three options?
Which bank would you choose and why would you choose it? Answers will vary.
Be sure to use complete sentences and proper spelling.
Who would choose Bank 3? Seriously! Who would go for this plan?
(2) Regardless of which loan plan you chose in the previous problem, calculate the first two lines of an amortization schedule for your chosen loan.