7. A loan of $5,000 at 8% for 2 years has a monthly payment of $226 and for 3 years the monthly payment would be $157. Which is the best estimate of the amount of interest you will save if you take the loan for 2 years instead of 3 years? A $420 B $320 C $220 D $120

7. A loan of $5,000 at 8% for 2 years has a monthly payment of $226 and for 3 years the monthly payment would be $157. Which is the best estimate of the amount of interest you will save if you take the loan for 2 years instead of 3 years? A $420 B $320 C $220 D $120

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

See similar textbooks

Related questions

Q: You are considering in investing one of the two options: Investment A requires an upfront payment of…

A: Sol:- Let x be the amount that Investment B generates annually. Then the total return from…

Q: Suppose a man borrowed $300 from a friend and agreed to pay him 20% annual simple interest when he…

A: so given a man borrowed $300 from a friend and agreed to pay him 20% annual simple interest when he…

Q: You have an opportunity to invest in a fund that has a yearly interest rate of 6%. How much should…

A: From the given information, it is observed that FV = $15,000, r = 6%, that is, r =0.06 and t = 3.…

Q: 13. Calculate the simple interest on a bank loan of $200,000 for a month, with a quoted rate of 6%…

Q: 8. The monthly payment for a $5,000, loan at 6% for 2 years is $221. The monthly payment for a…

A: In scenario 1, a monthly payment of $221 is being done every month for 2 years, that is., 24 months.…

Q: Instead of saving up, you decide to finance the laptop. What will your monthly payments be if you…

Q: Solve the problem. 3) If $4400 earned simple interest of $165.00 in 6 months, what was the simple…

A: To work out the rate of interest , under the given data,

Q: your credit card has a balance of $2700 in an annual interest rate of 16%. You decide to pay off the…

A: Given Loan amount =$2700 Interest rate =16%=0.16 =R Years-> 1 Amount paid/month for 4 years=…

Q: You want to purchase a new car and you are willing to pay R400 000. If you can invest at 11% per…

A: Solution : Given that The principal amount =R300000Total Amount A=R400000Interest rate…

Q: Solve the problem. In order to purchase a home, a family borrows $50,000 at an annual interest rate…

Q: Suppose I bought a $560 Teddy Bear with no down payment. The bear seller charges 77% SIMPLE interest…

A: Given information Principle P=$560 Rate of interest r=77% Time T=8 years We have to find the monthly…

Q: You have saved $16,000 for a down payment on a house. Your bank requires a minimum down payment of…

A: Consider the provided question, Given, amount available for down payment on a house = $16,000 And,…

Q: Q2: A company has additional money to invest for future funds growth. If the selected investment…

Q: You are thinking about buying a house. You find one you like that costs $150,000. You learn that…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the condominium…

A: Loan amount = 264,000 x (70%) = 184,800 Let's assume the monthly payments (EMIs) are made to pay…

Q: You would like to purchase a Tesla Model 3 car for $55000. The average rate of depreciation of the…

A: Give that a Tesla Model car for .The average rate of depreciation of the car is per year.The…

Q: The car of your dreams costs P 2000000 tod utomatic pure

A: Given, the car of your dreams costs $ 2000000 today You have found a way to earn 15% tax-free on…

Q: Would it be better to have a loan with 5% interest paid back over 2 years, or a loan with 2%…

A: To determine which loan is better, we need to calculate the total amount of interest paid over the…

Q: 5. Joe borrowed $700 from his parents to buy an iphone. They charged him 2.5% simple interest. He…

A: 5. Joe borrowed $700 from his parents to buy an iPhone. They charged him 2.5% simple interest and he…

Q: You have saved $14,000 for a down payment on a house. Your bank requires a minimum down payment of…

Q: Ashley lives in a condominium in downtown Toronto and works as a business analyst. He earns an…

Question

7. A loan of $5,000 at 8% for 2 years has a monthly payment of $226 and for 3 years the monthly
payment would be $157. Which is the best estimate of the amount of interest you will save if you
take the loan for 2 years instead of 3 years?
A $420
B $320
C $220
D $120

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Inequality$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, algebra and related others by exploring similar questions and additional content below.

Similar questions

3. The value of a car depreciates by 30% each year. If the car was purchased for $25 000, what will the value of the car be in 4 years? You must include an equation with your solution.
A gold mine is expected to yield an annual income of $90000 for the next 24 years, after which it will be sold for $6300. An investor wants an annual return on his investment of 12%. If he can establish a sinking fund earning an annual interest rate of 6%, how much should he pay for the mine? Answer = $
You look at your budget and decide that you can afford $260 per month for a car. What is the maximum loan you can afford if the interest rate is 3% and you want to repay the loan in 6 years? (Round your answer to the nearest cent.)
Worksheet 3.5 5. Find the total monthly payment for a $225,000 mortgage loan at 4.25% for 30 years. The assessed value of the home is $240,000. The annual taxes on the home are 1.1% of the assessed value and the insurance on the home costs $950 per year. Round your answer to the nearest whole dollar.
2
Solve both..
Help me solve this question please.
I need the answer as soon as possible
Your favorite snack costs $3.79 per package and a package lasts for one week. If the rate of inflation is 7%, what will your favorite snack cost you per week in 10 years?
You have saved $22,000 for a down payment on a house. Your bank requires a minimum down payment of 15%. What is the maximum price you can offer for a home in order to have enough money for the down payment? (Round your answer to two decimal places.)