i keep getting -0.02 as an answer it says its wrong can I get some...
60.1K
Verified Solution
Link Copied!
Question
Finance
i keep getting -0.02 as an answer it says its wrong can I get some help :)
An investor has $60,000 to invest in a $280,000 property. He can obtain either (option A) a $220,000 loan at 9.5 percent for 20 years; or (option B) a $180,000 loan at 8.75 percent for 20 years and a second mortgage for $40,000 at 13 percent for 20 years. All loans require monthly payments and are fully amortizing. How much more would be the effective cost % if you went forward with option A instead of option B. I.e., what is "cost% for A - cost% for B"? (Notes: if the cost is less for option A, don't forget the negative sign. Input answer without "%" sign, e.g., 5.75% as 5.75.) Answer: -0.02
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
i keep getting -0.02 as an answer it says its wrong can I get some help :)