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Contemporary Engineering Economics 6th Edition by Chan Park
Edition 6ISBN: 978-0134105598Contemporary Engineering Economics 6th Edition by Chan Park
Edition 6ISBN: 978-0134105598 Exercise 51
You received a bill consolidation loan offer in the mail.
Dear Larry Montgomery
I'm delighted to inform you that you have been approved for a Homeowner Bill Consolidation Loan of up to $417.7000, at our lowest fixed rate of 6.00% (6.184% APR). You can use this money for anything you like; to pay off your high-interest debt, pay your urgent expenses, take a dream vacation, or whatever you want. There are no restrictions! And unlike the interest you pay on credit cards, auto loans and personal loans, the interest on your Homeowner Bill Consolidation Loan is usually fully tax-deductible.
For an example, with the following debt consolidation, a typical homeowner would save $1,224.88 per month!!
First Month's Savings = $1,224.88
First Year's Savings = $14,698.56
Potential 10-year Savings = $146,985.60
Plus, tax-deductibility actually makes your savings even greater!!
(a) Do you agree with the savings claims by the loan company
(b) Explain any illogical claims made by the loan company.
Dear Larry Montgomery
I'm delighted to inform you that you have been approved for a Homeowner Bill Consolidation Loan of up to $417.7000, at our lowest fixed rate of 6.00% (6.184% APR). You can use this money for anything you like; to pay off your high-interest debt, pay your urgent expenses, take a dream vacation, or whatever you want. There are no restrictions! And unlike the interest you pay on credit cards, auto loans and personal loans, the interest on your Homeowner Bill Consolidation Loan is usually fully tax-deductible.
For an example, with the following debt consolidation, a typical homeowner would save $1,224.88 per month!!
First Month's Savings = $1,224.88First Year's Savings = $14,698.56
Potential 10-year Savings = $146,985.60
Plus, tax-deductibility actually makes your savings even greater!!
(a) Do you agree with the savings claims by the loan company
(b) Explain any illogical claims made by the loan company.
Explanation
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Contemporary Engineering Economics 6th Edition by Chan Park
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