Alex needs to borrow 10,000 dollars from the bank. the bank gives him two options.
1. a ten-y...
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Mathematics, 17.09.2019 01:00 eduardoma2902
Alex needs to borrow 10,000 dollars from the bank. the bank gives him two options.
1. a ten-year loan with an interest rate of 10% compounded quarterly, with the condition that at the end of 5 years alex must make a payment equal to half of his balance. at the end of the ten years, alex will pay off the remaining balance.
2. a ten-year loan with a simple annual interest rate of 12%, with just one lump-sum payment at the end of the ten years. find the positive difference between the total amounts alex has to pay back under the two schemes. round your answer to the nearest dollar.
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