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Personal Finance Case Study Essay

186 Words1 Pages
a) What rate, compounded monthly, would have resulted in the same accumulated debt?
How long would it take for her debt to reach 100,000 if she does not repay any amount throughout the term? Assume the same interest rate of 6% compounded semi-annually throughout this extended period
b) If she had taken the same loan amount from a local bank, it would have accumulated to $80,654 in 18 months instead of two years. What is the interest rate compounded semi-annually charged by the local bank?
c) What would her savings be if the loan had been issued to her at an annually compounded frequency?
d) If her contract with the investor required that she settle all dues in two years, how much could she have borrowed initially if she was sure that she could
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