consider this case: niagular corp. needs to take out a one-year bank loan of $550,000 and has been offered loan terms by two different banks. one bank has offered a simple interest loan of 9% that requires monthly payments. the loan principal will be paid back at the end of the year. another bank has offered 6% add-on interest to be repaid in 12 equal monthly installments. based on a 360-day year, what will be the monthly payment for each loan for november? (hint: remember that november has 30 days.) value simple interest monthly payment add-on interest monthly payment

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Parrain Parrain · Answer 1 · 2022-11-28T23:14:12+01:00

The monthly payment for each loan for November, based on the loan amount and the interest rates, is:

The monthly payment for the simple interest loan can be found by the formula:

= Loan amount x Simple interest loan percentage x 1 / 12 months in a year

Loan amount = $ 550, 000

Simple interest loan percentage = 9 %

The loan payment on the simple interest loan in November is therefore:

= 550, 000 x 9 % x 1 / 12

= 550, 000 x 9 / 12 %

= $4, 125

The payment in November for the add - on loan needs you to find the add - on amount in November :

= Loan amount x ( 1 + add on percentage)

= 550, 000 x ( 1 + 6%)

= $ 583, 000

Then find the monthly payment to be:

= 583, 000 / 12 months in a year

= $48, 583. 33

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