Dahlia is trying to decide which bank she should use for a loan she wants to take out. In either case, the principal of the loan will be $19,450, and Dahlia will make monthly payments. Bank P offers a nine-year loan with an interest rate of 5. 8%, compounded monthly, and assesses a service charge of $925. 0. Bank Q offers a ten-year loan with an interest rate of 5. 5%, compounded monthly, and assesses a service charge of $690. 85. Which loan will have the greater total finance charge, and how much greater will it be? Round all dollar values to the nearest cent. A. Loan Q’s finance charge will be $83. 73 greater than Loan P’s. B. Loan Q’s finance charge will be $317. 88 greater than Loan P’s. C. Loan P’s finance charge will be $20. 51 greater than Loan Q’s. D. Loan P’s finance charge will be $234. 15 greater than Loan Q’s.

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.