Business, 24.07.2019 20:50 karencbetancourt

Charlie deposits, or invests, his paycheck in a savings account. the bank can then offer some of the money to a borrower in the form of a loan. how can charlie benefit financially from this relationship? charlie can feel good that he is a borrower. charlie can choose to invest his money in another bank that does not make loans to borrowers. charlie can decided to take his money out of the savings account. charlie can earn interest on his original deposit.

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Answer from: grimwolf1023

The answer is: charlie can earn interest on his original deposit

The average interest rate for saving account is around 0.08% annually. this number is considered to be small compared to other form of investments, but extremely safe since it is insured by the federal government.

To increase the earning from his saving, Charlie could opt to put his money on certificate of deposit. By doing this, Charlie could increase the interest rate that he obtained with one downside. He would not be able to take out the saving unless the maturity date on the certificate of Deposit is over.

Answer from: Quest

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans.

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.

Answer from: Quest

Answerrole;

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Charlie deposits, or invests, his paycheck in a savings account. the bank can then offer some of the...