You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs...

Question

You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $5000. You plan to put down $1000 and borrow $4000. You will need to make annual payments of $1000 at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank’s perspective?

David · Accepted Answer

Timeline 
	0
	1
	2
	3
	4
	5
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	
	4000
	–1000
	–1000
	–1000
	–1000
	–1000
From the bank’s perspective, the timeline would be similar except all the signs are reversed.

You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $5000. You plan to put down $1000 and borrow $4000. You will need to make annual payments of $1000 at the...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment