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Which is preferable a loan with a lower present value or a loan with a lower periodic installment and why?
The answer is it depends. Assuming that the way that you get the present value of the loan is by applying a discount rate to the payment stream to both loans, the obvious answer would be that the desirable one is the one with the lowest present value. However, things are not so simple. You also have to take into consideration the impact on your cash flow. The following thoughts will give you an idea of where I am coming from. - By paying a lower payment, you will have extra cash available to invest. - What kind of return can you make on this extra cash? - This is the main reason why borrowers want longer maturities.
What else can I help you with?
Can I apply for installment loans with a cosigner?
Yes, you can apply for installment loans with a cosigner. A cosigner is someone who agrees to be responsible for the loan if you are unable to make payments. Having a cosigner can increase your chances of approval and may help you secure a lower interest rate.
How can I consolidate installment loans into one single payment?
To consolidate installment loans into one single payment, you can consider taking out a debt consolidation loan. This loan allows you to pay off all your existing installment loans and combine them into one monthly payment with a potentially lower interest rate. This can simplify your finances and make it easier to manage your debt.
What are the benefits of using an installment credit card for making purchases?
Using an installment credit card for purchases can help you budget by spreading out payments over time, potentially offering lower interest rates than traditional credit cards, and helping to build credit history through responsible use.
Will paying off loans early give you a lower credit score?
As long as you have had the loan open for 12 months and have been making timely payments it will not lower your credit score. It will actually increase your credit score to pay off early if it is an installment loan.
What are the benefits of getting debt relief help?
debt relief optioins are designed to provide much needed relief to individuals or families who are in debt. This relief can be what saves many individuals from financial and emotional turmoil. To a family in debt, debt relief can literally be lifesaving.
Is a loan with a lower present value preferable to a loan with a lower periodic installment?
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Is a loan with a lower present value or a loan with a lower periodic installment preferable?
All things being equal, a loan with lower present value is preferred to a loan with lower periodic installment. Simply because you are paying a lower interest. A present value of a loan is determined by 1) amount of loan 2) interest rate 3) number of payment frequency such as monthly, weekly, and etc 4) the size of each periodic payment 5) time of the loan So if 1,3, and 5 remain the same and only 2 and 4 can change, then the relationship is of 2 and 4 is positively correlated. That is the higher the interest rate the higher the size of periodic payment.
What is preferable a loan with a lower present value or a loan with a lower periodic installments?
loan with lower present value means higher tenure of repayment & because of this higher tenure its present value factor increases and its present value gets reduced. on the other hand loan with lower periodic installments means again you are making repayments over longer period of time. so as far as my knowledge is concerned, both are same
What is preferable a loan with lower interest present value or a loan with a lower periodic?
The lower interest rate is always preferred because interest is the amount you pay for borrowing money. In either case, you'll have to pay back the principle, so it amounts to a cost of money borrowed issue. By opting for a lower periodic payment, you are spending more to borrow the same money. Not the best option unless you are the lender.
What element is large on the periodic table?
Cesium is largest element on the periodic table.The atomic radius of Cs is around 273pm. It is present at the lower left corner of the table.
Where are the heaviest elements on the periodic table?
At the lower right corner of the Periodic Table.
What is the daily carb intake allowance for a 2000 calorie diet?
Up to 200 grams. But lower is preferable.
What are the least eletronegative elements in the periodic table?
The metals in the lower left corner of the periodic table are the least electronegative.
Does Na or Rb have lower electronegativity?
Rb has lower electronegativity than Na. Electronegativity decreases as you move down a group in the periodic table, so Rb, which is located below Na in the periodic table, has lower electronegativity.
Can I apply for installment loans with a cosigner?
Yes, you can apply for installment loans with a cosigner. A cosigner is someone who agrees to be responsible for the loan if you are unable to make payments. Having a cosigner can increase your chances of approval and may help you secure a lower interest rate.
How can I consolidate installment loans into one single payment?
To consolidate installment loans into one single payment, you can consider taking out a debt consolidation loan. This loan allows you to pay off all your existing installment loans and combine them into one monthly payment with a potentially lower interest rate. This can simplify your finances and make it easier to manage your debt.
What type of the pigment are present lower epidermis?
what type of pigment of present
