Amanda is taking out an amortized loan for $98,000 to open a small business and is deciding between the offers from two lenders.
She wants to know which one would be the better deal over the life of the small business loan, and by how much.
Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.
If necessary, refer to the list of financial formulas.
(a) An online lending company has offered her a 9-year small business loan at an annual
interest rate of 11.4%. Find the monthly payment.
$0
(b) A savings and loan association has offered her a 9-year small business loan at an
annual interest rate of 11.7%. Find the monthly payment.
$0
(c) Suppose Amanda pays the monthly payment each month for the full term. Which
lender's small business loan would have the lowest total amount to pay off, and by how
much?
Online lending company
The total amount paid would be less than to the savings and loan association.
Savings and loan association
The total amount paid would be less than to the online lending company.
X