An investor has $60,000 to invest in a $280,000 property. he can obtain either a $220,000 loan at 9.5 percent for 20 years or a $180,000 loan at 9 percent for 20 years and a second mortgage for $40,000 at 13 percent for 20 years. all loans require monthly payments and are fully amortizing.
a. which alternative should the borrower choose, assuming he will own the property for the full loan term?
b. would your answer change if the borrower plans to own the property only ve years?
c. would your answers to (a) and (b) change if the second mortgage had a 10-year term?

Your take on decision making process

Based on what you learned about time management which of these statements are true

Asmall town wants to build some new recreational facilities. the proposed facilities include a swimming pool, recreation center, basketball court and baseball field. the town council wants to provide the facilities which will be used by the most people, but they face budget and land limitations. the town has $400,000 and 14 acres of land. the pool requires locker facilities which would be in the recreation center, so if the swimming pool is built the recreation center must also be built. also, the council has only enough flat land to build the basketball court or the baseball field. the daily usage and cost of the facilities (in $1,000) are shown below. which facilities should they build? facilityusagecost ($1,000)landswimming pool4001002recreation center5002003basketball court3001504baseball field2001005