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

Ashley lives in a condominium in downtown Toronto and works as a business analyst. He earns an annual take-home salary of $61,200, and every month he spends $1,500 on rent, $500 on car expenses, $200 on a line-of-credit interest payment, $400 on miscellaneous expenses, and saves $2,500. a. What percent of his monthly take-home salary are his monthly expenses? %= Round to two decimal places. b. His financial advisor suggested he invest 27% of his take-home salary in a mutual fund. What percent of his current savings would this amount be? %E Round to two decimal places.

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

Suppose you owe $18,000 on a credit card that carries an APR of 24%. Because the balance is so high, you choose to stop charging and pay off the card. You can afford to make only the minimum monthly payment, which is 5% of the balance. Then your balance after t months is given by B = 18,000(1.02 ✕ 0.95)t  dollars. How many payments will you have to make to get the balance below $100?

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.)