Calculator Problem – 03/24/2014

You have two financing options when borrowing $15,000 over five years.  You can make monthly payments at 4.25% or annual payments at 4.5%.  What would the annual difference between the two options be?

(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to for the answer.)

Answer for 03/10/2014 problem:

(I=21,PV=5000,PMT= -125,FV=0) N=69.40 months