Question

1. interpret the quote in the context of what you learned about loans in this section and on your experiences or expectations.
2. arrange the following lending institutions in descending order according to their aprs for a $10,000, 2-year loan.

east meadow savings \t $4\frac{1}{2}\\%$
clinton park credit union \t 4%
tivoli trust \t $4\frac{3}{8}\\%$
first bank of rhinecliff \t 4.45%
columbia consumer finance corp. \t $4\frac{9}{16}\\%$

Explanation:

Step1: Convert mixed numbers to decimals

• East Meadow Savings: \(4\frac{1}{2}\% = 4.5\%\)
• Clinton Park Credit Union: \(4\% = 4.0\%\)
• Tivoli Trust: \(4\frac{3}{8}\% = 4.375\%\)
• First Bank of Rhinecliff: \(4.45\% = 4.45\%\)
• Columbia Consumer Finance Corp.: \(4\frac{9}{16}\% = 4.5625\%\)

Step2: Compare decimal values

• \(4.5625\% > 4.5\% > 4.45\% > 4.375\% > 4.0\%\)

Step3: Arrange institutions

• Columbia Consumer Finance Corp. (\(4\frac{9}{16}\%\)) > East Meadow Savings (\(4\frac{1}{2}\%\)) > First Bank of Rhinecliff (\(4.45\%\)) > Tivoli Trust (\(4\frac{3}{8}\%\)) > Clinton Park Credit Union (\(4\%\))

Answer:

Columbia Consumer Finance Corp., East Meadow Savings, First Bank of Rhinecliff, Tivoli Trust, Clinton Park Credit Union