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Finance and Investment
Date Posted: 15/06/2021
Category: Business
Due Date: 20/06/2021
Instruction
The purchase of real estate is made possible by financial institutions lending money as we see explained in Chapter 1. The cost of that money to the borrower is the interest charged by the lender. If the borrower pays off a loan early the lender sometimes charges a financial penalty for paying the money back ahead of time! What justification does the lender have for doing this? Do you agree that the lender should be able to charge a penalty for paying the money back early? If so why?
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