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12 October, 17:47

You have a choice of whether to lease or buy a location. You can lease it for $3,500 per month or buy it for $1 million. A bank will give you a mortgage at 4% per year. How will your monthly mortgage interest compare to the monthly lease cost?

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Answers (2)
  1. 12 October, 18:01
    0
    Monthly mortgage interest is less than monthly least cost.

    Explanation:

    4% of 1,000,000

    = $40,000 per year

    Per month = 40,000 : 12

    = %3,333.33
  2. 12 October, 18:48
    0
    monthly mortgage interest is less than monthly lease cost

    Explanation:

    4% of 1000000

    = $40,000 per year

    Per month: 40000/12

    = %3,333.33

    Monthly mortgage interest is less than monthly lease cost
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