Re: ::::|| VU ||:::: mgt411 help plzzzzzzzzzzzzzzzzzzzz

jazakALLAH................

On Fri, Jul 22, 2011 at 7:36 PM, HAFIZ NAUMAN SHAHID <mc100400123@vu.edu.pk> wrote:

let
she want to take a loan of Rs. 100
in case of 8% semi annually
after six months
remaining principal will be = 100/(1+0.08)^0.5
                                      = 96.25
after one year
the amount remaining principal will be = 96.25/(1+0.08)^0.5
                                                       =  92.63
and if we take a loan form that bank at interest rate 7.5%
then
the principal amount remaining will be = 100/(1+0.075)^1
                                                        = 93.02
it is obvious that when ever the interest rate is low, taking loan is more beneficial and when the interest rate is high taking loan can be more costly

On Fri, Jul 22, 2011 at 11:50 AM, aAisH <mc100405526@vu.edu.pk> wrote:

Mary is planning on taking out a mortgage loan for her new house. She is given the choice of two different banks: Bank A has quoted annual rate of 8% compounded semi-annually and Bank B has a quoted annual rate of 7.5% compounded for a certain number of times a year. Which bank should Mary choose?

       ► Bank A

       ► Bank B

       ► Indifferent between Bank A and Bank B

       ► Insufficient information

confirm the ri8 ans plzzzzzzzzzzzzz

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THANKS AND REGARDS;
 
*ஜ۩۞۩ஜ(¯`*•.¸,¤°´`°¤,¸.•*´¯)ஜ۩۞۩ஜ
       HAFIZ NAUMAN SHAHID
           MBA 2nd semester
  ˜*•. ˜"*°•.˜"*°••°*"˜.•°*"˜ .•*˜                      
       6TH ROAD SATELLITE TOWN
             RAWALPINDI
       "mc100400123@vu.edu.pk*

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