Project #32364 - FINANCE

Can someone answer these questions for me and explain them. thanks a lot in advance! 

1. Jack needs to borrow $1000 for the upcoming year. West Coast Bank will give him a loan at 9 percent. East Coast bank will give him a loan at 7 percent with a $50 loan origination fee. First Canadian will give him a loan at 6 percent with a $25 dollar origination fee. Assume that the interest rate on each loan is compounded monthly. Determine the total interest and fees Jack will be charged in each case. Which Loan Should he choose? 

2. If Brad's stock doubles in value over the next 5 years, what annual return, compounded monthly, would he realize? Based on his projected annualized return, would it be advisable to sell the stock to pay off his credit card? Should Brad consider shopping for a new credit card? If so, how should he go about doing this? 

3.Address Brad's reluctance to pay off his credit balance. Show him what he could earn in five years if he paid the credit card balance off and invested the required minimum monthly payment saved at 6 percent, compounded monthly. Note: The required minimum monthly payment is 3 percent of the outstanding balance of $8000 

4. What are the consequences if Brad decides to delay paying his credit card bill for a couple of months to reduce his expenses?

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Due By (Pacific Time) 06/03/2014 11:00 pm
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