Rebate Versus Low Interest Rate Kyle Parker of Concord, New Hampshire, has been shopping for a new car for several weeks. He has negotiated a price of $38,000 on a model that carries a choice of a $2,500 rebate or dealer financing at 2 percent APR. The dealer loan would require a $1,000 down payment and a monthly payment of $649 for 60 months. Kyle has also arranged for a loan from his bank with a 4 percent APR. Use the Run the Numbers worksheet to advise Kyle about whether he should use the dealer financing or take the rebate and use the financing from the bank. Round your answer to two decimal places. Adjusted APR (dealer financing): % Kyle should use

Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker price of $36,500 with factory and dealer rebates of $4,200 (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)$ (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)$ (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)%(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.

it For pre nments Unit Activity: Credit Cards and Large Purchases Buying a House Bethany and Samuel are buying a new house. They have $25,000 saved for a down payment and know that they can afford a monthly payment of $1,500 or less. They also know that the best interest rate they can get is 5.1% annually and they want to sign a 30-year mortgage. Part A If 5.1% is the annual interest rate, what is the monthly interest rate? BI U X² X₂ V 田 15px- Space used (includes formatting): 0/ 15000 V V Part B If they sign a 30-year mortgage, how many monthly payments will they make? BIUX² X₂ 15px M くく EEEEE 6 of 7 E Dec 1 1:56 Save & Exit

Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He has found one priced at $31,000. The dealer has told Tim that if he can come up with a down payment of $6,200, the dealer will finance the balance of the price at a 6% annual rate over 5 years (60 months). a. Assuming that Tim accepts the dealer's offer, what will his monthly (end-of-month) payment amount be? b. Use a financial calculator or spreadsheet to help you figure out what Tim's monthly payment would be if the dealer were willing to finance the balance of the car price at an annual rate of 3.8%? a. Tim's monthly (end-of-month) payment amount is $ (Round to the nearest cent.)

You want to purchase a new company car for employees to visit clients. If you purhcase the car for $60,000 with a loan that has an APR of 12% in which interest accrues monthly, what would you expect the monthly payments to be if the term of the loan is 5 years?     $1,683     $572     $1,322     $1,000

Loan A B с Principal $7,000 $7,000 $7,000 Annual payment $2,914.24 $2,256.61 $1,846.48 Term (years) 3 345 4

Time to repay installment loan Personal Finance Problem Mia Salto wishes to determine how long it will take to repay a $18,000 loan given that the lender requires her to make annual end-of-year installment payments of $3,379. a. If the interest rate on the loan is 14%, how long will it take for her to repay the loan fully? b. How long will it take if the interest rate is 11%? c. How long will it take if she has to pay 18% annual interest? d. Reviewing your answers in parts a, b, and c, describe the general relationship between the interest rate and the amount of time it will take Mia to repay the loan fully. a. If Mia can borrow at an annual interest rate of 14%, the amount of time it will take for her to repay the loan fully is years. (Round to two decimal places.) C

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Calculating Loan Payments You want to buy a new sports coupe for $69,300, and the finance office at the dealership has quoted you a loan with an APR of 5.6 percent for 48 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?

Qualifying Scenario: Rosanne is buying a home for 900k. She has 110k in liquid assets, a 740 middle credit score, $1200 a month in revolving credit card debt and makes 200k a year. Her lender requires her to have a 90% LTV, 30/43 DTI ratios and 2 months PITI for PCL. The loan will be a 30 year fixed with a 3% interest rate. Her closing costs will be 15k. Escrows will be $1000 a month. She can buy her interest rate down by .125% by paying a half percent discount point. A .25 buy down costs 1 points and so on. She can increase her rate by .125% to get a lender credit of a half point or .25% for 1 point and so on. Does she qualify? If not, why? What can she do to qualify?