Deborah can't decide whether she wants to buy and car or lease a car. She is looking at a $48,000 car. If she buys it, she will take out a 3-year loan at 3.95% interest. N= FV= 1%= P/Y= PV= C/Y= PMT= End or Begin What is the total amount that Erin will pay over the life of the loan?
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- Erin can’t decide whether she wants to buy and car or lease a car. She is looking at a $45,000 car. If she buys it, she will take out a 3-year loan at 3.75% interest. N= FV= I%= P/Y= PV= C/Y= PMT= End or Begin What is the total amount that Erin will pay over the life of the loan?Yolanda is taking out a mortgage for S145,000 to buy a new house and is deciding between the offers from two lenders. She wants to know which one would be the better deal over the life of the mortgage loan, and by how much. Answer each part. Do not round intermediate computations, and round your answers to the nearest cent. If necessary, refer to the (a) Her credit union has offered her a 30-year mortgage loan at an annual interest rate of 5.4%. Find the monthly payment. (b) A bank has offered her a 15-year mortgage loan at an annual Interest rate of 5.2%. Find the monthly payment. (c) Suppose Yolanda pays the monthly payment each month for the full term. Which lender's mortgage loan would have the lowest total amount to pay off, and by how much? O Credit union The total amount paid would be S less than to the bank. O Bank The total amount paid would be S less than to the credit union.Lashonda wants to buy a new house but needs money for the down payment. Her parents agree to lend her money at an annual rate of 2%, and charged a simple interest. They lend her $6000 for 3 years. She makes no payments except the one at the end of that time. a) how much total interest will lashonda have to pay? b) what will the total repayment amount be (including interest)?
- Part B) Suppose karen has $2000 each month that she can allocate between mortgage payments and retirement. That is, if she pays $1200 toward her mortgage, then she can put the remaining $800 into her retirement account each month. She plans to retire in 30 years. If she goes with the 15 year home loan, then the first 15 years she will have to split the $2000 between mortgage and retirement, but then the last 15 years she can put all $2000 into her retirement account. If she goes with the 20 year home loan, then the first 20 years she will have to split the $2000 between mortgage and retirement, but then the last 10 years she can put all $2000 into her retirement account. If she goes with the 30 year home loan, then she will split the $2000 between mortgage and retirement for all 30 years. Her best retirement option offers her a nominal rate of 5.5%, compounded monthly. Calculate the value of her retirement account in 30 years under each of the 3 plans. Which plan will give her the…Joe wants to own a home in the future. He asks you describe an advantages and disadvantage of a FRM versus an ARM. He then asks you to describe the advantages and disadvantages of a 15-year loan versus a 30-year loan. He also wants to know how the portion of the home payment that comprises interest changes over the years assuming he takes out an FRM. Is there anything he can do to reduce the total amount he’ll pay for the home? What else would be added to his monthly mortgage payment? What are three benefits of home ownership? What are three benefits of renting?To be able to take her dream vacation, Donna decides to save for 5 years. She opens a savings account with $600. The account pays simple interest at an annual rate of 2%. She doesn't make any more deposits. 1. How much total interest will Donna earn? 2. What will the total amount in the account be (including interest)?
- Mary wants to buy a new car but needs money for the down payment. Her parents agree to lend her money at an annual rate of 5%, charged as simple interest. They lend her s7000 for 3 years. She makes no payments except the one at the end of that time. Answer the following questions. If necessary, refer to the list of financial formulas. (a) How much total interest will Mary have to pay? (b) What will the total repayment amount be (including interest)?6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?Gabby is planning to buy a home. She has some money for a down payment already saved. She sees a home she would like and calculates that she would need to borrow $210,000 from a bank for a 30-year period. The APR is 7.2%. What will be her total interest for the 30 years? Step 1) What is the monthly payment? Step 2) What are the total payments ($) for the entirety of the loan? Step 3) What is the total interest?
- David is planning to buy a new car. Since David has not save any money, he plans to take out a loan to pay for the car. He is able to finance $43,950 with a 5 year loan. The loan has a APR of 3.25% compounded monthly. Round answers to two decimal places a. What is the minimum payment amount David will need to make for his car loan? b.How much will David pay altogether over the life of his car loan?Problem: Jino sold his house. In addition to cash, he took a mortgage on the house. The mortgage will be paid off by monthly payments of P12, 345 for 10 years. He decided to sell the mortgage to a local bank. The bank will buy the mortgage, but requires a 1% per month interest rate on their investment. How much will the bank pay for the mortgage?To help with a down payment on a home, Elsa is going to invest. Assuming an interest rate of 1.73% compounded annually, how much would she have to invest to have $36,800 after 7 years? Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas. $0 S oo E D