Question

In: Finance

List 3 steps you can take to lower the overall cost of borrowing money. Explain how...

List 3 steps you can take to lower the overall cost of borrowing money. Explain how each step can save you money.

Solutions

Expert Solution

Steps to lower overall cost of borrowing money is stated below:-

1) Selection of Lender

one should select the lender wisely. Thoroughly analyse the available lenders and rates at which loans are offered by them. At the end, select the lender who is charging lowest rate of interest.

2) Duration of loan

The duration for which loan is taken also affects the cost of borrowing. Larger the duration, lower will be the monthly installment and thus the cost will also be low.

3) Advance Repayment

The concept is simple, "The earlier you repay the loan- the less interest you have to pay on Principal amount borrowed"

4) Negotiation

The deal to take loan should be properly negotiated. A good negotiator can get the loan rates reduced to levels lower than those which are offered to general public

Please upvote the answer if it was of help to you.
In case of any doubt just comment below, I would love to help.


Related Solutions

How do monetary financial institutions create liquidity, pool risk, lower the cost of borrowing, and lower...
How do monetary financial institutions create liquidity, pool risk, lower the cost of borrowing, and lower the cost of monitoring borrowers?
You are the Emergency Manager responsible for handling this emergency. List the steps you would take...
You are the Emergency Manager responsible for handling this emergency. List the steps you would take to respond to the initial calls being received. How would you assess initial damage and the areas of the city that are in most need? How would you address the problems that are likely to last for multiple days, e.g., a collapsed freeway with trapped citizens? Provide illustrative examples to support your position.
List a minimum of 3 steps the Project Manager should take for the following:   o   BC-MAR...
List a minimum of 3 steps the Project Manager should take for the following:   o   BC-MAR HIT planning o   BC-MAR HIT design o   BC-MAR HIT selection o   BC-MAR HIT implementation o   BC-MAR HIT integration o   BC-MAR HIT testing o   BC-MAR HIT evaluation o   BC-MAR HIT support/maintenance
a. (20 point) Explain the transcription steps in order. Which molecules take roles? (you can draw...
a. (20 point) Explain the transcription steps in order. Which molecules take roles? (you can draw and explain) b. (20 points) How a ribosome work for protein synthesis? (you can draw and explain) c. (20 points) What is the molecular mechanisms of Coronavirus entry into cell, explain.
what are steps that a small business can take to protect its brand? explain
what are steps that a small business can take to protect its brand? explain
1. can you explain how an overall increase in A/R over the course of a year...
1. can you explain how an overall increase in A/R over the course of a year effects the statement of cash flows for that year, and what it indicates? 2. can you explain how depreciation expense is reported in the statement of cash flows? 3. can you explain how an overall decrease in Utilities Payable during the year effects the statement of cash flows for that year, and what it indicates?
1. List the steps for securing a client device 2. Define application security 3. Explain how...
1. List the steps for securing a client device 2. Define application security 3. Explain how physical security can be used for protection Book to use: Michael T. Simpson, Nicholas Antill, Hands-On Ethical Hacking and Network Defense, Third Edition. (Chapter 9) PLEASE ANSWER ALL QUESTIONS!!!
Explain what steps would you take to compare the worthiness of two different financial investments? How...
Explain what steps would you take to compare the worthiness of two different financial investments? How would you choose which investment is a more attractive choice?
How long does it take to double your money if you can earn 16%per year...
How long does it take to double your money if you can earn 16% per year if the interest rate is compounded quarterly?
a. List the four pillars of Software security and briefly explain how they contribute to overall...
a. List the four pillars of Software security and briefly explain how they contribute to overall security of a system. b. Give an example and demonstrate how input data validation can be implemented in secure software design. c. Briefly explain the design factors one must consider while developing secure coding.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT