Challenge question 1. Michael is shopping for a special automobile. He finds the exact car he wants, a 1966 dark blue Pontiac GTO. This car is currently the property of a neighbor, so to buy it for the agreed-upon price of $35,000, Michael must secure his own financing. He visits four differer financial institutions and gets the following available loans: Bank 1: 60 monthly payments of $726.54 Bank 2: 48 monthly payments of $870.97 Bank 3: 156 weekly payments of $256.20 (Assume a 52-week year.) Bank 4: 24 quarterly payments of $1,903.28 Which loan should Michael take? Hint: Which loan has the lowest EAR?
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- Problem 1 Michelle borrows $7, 200 from her father to buy a used car. She repays him after9 months, at an annual simple interest rate of 6.2%. Find the total amount she repays. PlEASE GIVE FULL SOLUTIONI need help for D, E, and G please You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to apply for a mortgage loan on a house they want to buy. The house has a market value of $170,000. Your bank requires 1/5 of the market value as a down payment. (a) What is the amount (in $) of the down payment? $ (b) What is the amount (in $) of the mortgage for which the Bradys are applying? $ (c) Your bank offers the Bradys a 30 year mortgage with a rate of 5%. At that rate, the monthly payments for principal and interest on the loan will be $5.37 for every $1,000 financed. What is the amount (in $) of the principal and interest portion of the Bradys' monthly payment? $ (d) What is the total amount (in $) of interest that will be paid over the life of the loan? $ (e) Your bank also requires that the monthly mortgage payments include property tax and homeowners insurance payments. If the property tax is $1,710 per…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
- Clear my chOice Corry has an income of $80,000 that he is willing to spend over a year. If his bank account's interest rate is 3.05% and the cost associated for him to visit the bank is $5.00. What is Corry's average money holding? O a. $488.00 O b. $2,560.74 O c. $5,000.00 O d. $16.00 Previous page O Type here to search1. Rayleene is getting a loan to buy a used car from a seller on Kijiji. The price of the car is $9200.00. She has a down payment of $500.00 and is able to negotiate an interest rate of 4.5% from her bank. Rayleene is trying to decide whether to get her loan for 3 or 4 years. a. Use an online personal loan calculator to fill in the following table to help her decide: Amount of Principal Interest Rate Length of Loan 3 year loan 4 year loan Monthly Payment Total Payments (Monthly Payment x # of months) Total Cost of the Loan (Total Payments – Principal) b. Should Rayleene take her car loan out for 3 or 4 years? Why?You borrow $100,000 from a bank to buy a house. Is this mortgage loan an asset or liability on the bank's balance sheet? Question 29 options: Asset Liability
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- View History Bookmarks Bookmarks Window Help rtized Loans - 21516 MAT142 Topics In College Math DERIVITA Tiana Klughart $ CHECK ANSWER O John is looking for a new car. He has a down payment of $1,750.00 and wants to pay $450.00 per month for 4 years. The best deal he found for an amortized loan is his local bank, at a rate of 2.75%. What is the highest price car he should consider buying? 7 a $ **** -- d2l.pima.edu % D2L 5.3 Amortized Loans - 21516 MAT142 Topics In College Math Activity Details 5 СЛ Chapter 5.3 S * S C 307+ Question 3 of: ( C SAndrew has purchased a new car. He want to set aside enough money in a bank account to pay the maintenance for the first three years. The maintenance cost of the car is: Year 1: $120 2: $150 3: $180 Assume that the maintenance costs occcur at the end of each year and that the bank pays 5% interest. How much should Andrew deposit in the bank now? In order to solve this question, what information & formula would Andrew need? n=5, i=7%, G=60 and ? = ?(? + ? ) � A1=120, G=30, n=3, i=5% & ? = ? [ ?/ ? − (? / (?+?) ?−?) ] A1=150, i=8%, G=50, n=4 & ? = ? [ (?+?) ?−? ?(?+?) ? ] G=210, i=5%, n=3, & ? = ?[ (?+?) ?−? / ? ]1. Hernandez decided to borrow $85,000 for 10 months. She found that banks would lend to her only if she had a cosigner on the note-fortunately her uncle was a successful business owner and he agreed to cosign. Bank One offered the funds at a 10% simple discount. Find the maturity value of the loan and the discount. 1. 2. Once Hernandez's uncle agreed to cosign on a loan, Union Bank offered to lend Hernandez $85,000 at 10.5% simple interest. Find the interest and maturity value. 2. 3. Find the loan with the lower interest and find the difference in interest. 3. 4. Find the effective interest rate for both loans to the nearest hundredth of a percent. Bank Interest Loan Amount Effective Rate Bank One $7727.27 $85,000 Union Bank $7437.50 $85,000 4.