Bill wants to purchase a new car for $ 45,000. Bill has no savings, so he needs to finance the entire purchase amount. With no down payment, the interest rate on the loan is 13% and the maturity of the loan is six years. His monthly payments will be $ 903.33. Bill’s monthly net cash flows are $ 583.00. Bill also has a credit card with a $ 10,000 limit and an interest rate of 18%. If Bill uses all of his net cash flows to make the monthly payments on the car, how much will he add each month to his credit card balance if he uses it to finance the remainder of the car? What will the finance charges be on his credit card for the first two months that finance charges apply?
Answer to relevant QuestionsMary and Marty are interested in obtaining a home equity loan. They purchased their house five years ago for $ 125,000 and it now has a market value of $ 156,000. Originally, Mary and Marty paid $ 25,000 down on the house ...Why does the value of a home depend on the demand for homes? What factors influence the demand for homes? What are the costs of renting a home? How do price, convenience of the location, and maintenance affect your home-buying decisions? Mia would like to purchase a specific home and knows that she can afford the home, but her income is slightly lower than the amount needed to qualify for the mortgage. She is a waitress and makes much of her income from tips ...
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