You are considering two cars that you plan on making for 5 years. One has an EPA combined city and highway rating of 33 mpg. The second has an EPA rating of 36 mpg. Suppose gasoline costs $3.47 per gallon and you drive $10,000 miles each year. (Round your answer to the nearest cent.) (a) How much (in dollars) will you save in 1 year by purchasing the 36 mpg car? (b) If you deposit that amount at the end of each year for 5 years of ownership into account that earns 4.8% compounded annually, how much (in dollars) will you save over 5 years?

It’s time to get a new laptop. The laptop is $1,800.  You could put money aside for it each month for one year.  If you put the money in an account that earns 4.5%, how much will you have to save each month?Your other option is to finance it over two years paying 7.1%. How much would your monthly payment be?What are the total acquisition costs of each option?

You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $500. The loan will have an 11% APR based on end-of-month payments. a. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. b. What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent.

You want to buy a house in 4 years. The type of house you want to purchase currently costs $ 160,000 but housing costs are rising 4% per year. The down payment you will need is 10% of the cost of the home (which will be the cost four years from now). You have $ 5,000 now (and only now, not an extra $5,000 each year) that you will (today) put into a savings account paying 2% APR monthly and you will use this to HELP cover the down payment. (You must come up with the rest of the down payment somehow. You can only borrow 90% of the final cost of the house.) You expect a 7% APR compounded monthly, with monthly payments for a 30 year loan. The amount the house would be expected to cost in 4 years is: Question 6 options: $188,000 $160,000 $187,177 $179,978 $200,000