Loan Repayments Help (1 Viewer)

[TeaYarn]

NSW Bank offers a loan at 9% p.a. with an interest-free period of 3 months, while Sydney Bank offers a loan at 7% p.a. Compare these loans on an amount of $5000 over 3 years and state which bank offers the best loan and why?

- In the three month period are they still making repayments?

 

[gwc]

Nope. So NSW Bank would be:
T1=5000(1.0075)
T2=5000(1.0075)^2
T3=5000(1.0075)^3
T4=5000(1.0075)^4 - M
T5=5000(1.0075)^5 - M(1+1.0075)
etc. etc.

2 year late reply for anyone that may be wondering this in the future.