You are presented two choices to borrow funds for a significant unexpected expenditure. it will take at least three years to pay off the loan assuming you make more than the minimum payment
Which choice is the least cost alternative in terms of interest paid over the life of the loan?
A) A credit card with a variable interest rate of 4 % over the prime rate; for info, the latest forecast is for prime to stay below 5% throughout the life of your loan.
B) An interest only balloon payment loan for 3 years with 10% interest, but your monthly payments would be half of those compared to the credit card.
C) There is not enough information to make the decision.
D) Both A and B are about equal since the interest only payment aspect offsets the slightly higher interest rate on the credit card
Answer: A
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Which type of economy consists mostly of households with very low family incomes?
A) post-industrial B) developed C) emerging D) industrial E) subsistence
Training is especially important in reinforcing the customer service culture at Zappos where
A) new employees are offered $4,000 to quit. B) training lasts 7 weeks. C) training includes tests. D) trainees must graduate to be an employee. E) all of the above