Step 1: Choose one of the following topic/questions sets to answer, remember you only need to answer
Question:
Step 1: Choose one of the following topic/questions sets to answer, remember you only need to answer one of the following sets - not all of them:
*** SHOW ALL YOUR WORK***
- Topic/Question #1 -Choose any vehicle, from any dealer (new or used) That you would like to purchase.
Based upon the purchase price, you are to calculate the monthly payments over a 5 yr period (you may shorten or lengthen the amortization - an provide justification if you change the amortization).
Then calculate the amount of interest that you will pay over the length of the loan. If you choose a zero % APR - you must research and discuss the pros and cons of taking this offer and why a dealership might advertise/offer this. Otherwise, you may choose an appropriate interest rate - provide justification of this rate i.e. consumer rates from a FI (financial Institution or maybe even the dealership itself.
Are there any other costs that you might consider when purchasing this vehicle? After completing the calculations and analysis, discuss if you feel your chosen car would be 'worth it'? Why or why not? Please show all your loan payment work and provide a link to the vehicle. *** please note amortization must be appropriate - i.e. you wouldn't be able to amortize a 2011 Honda for 7years ***
OR
- Topic/Question #2 - Choose any house (in Alberta) that you would like to purchase. Max purchase price $750,000. Also assume that you have a 20% deposit to put down on the purchase of the home. Calculate your monthly mtg payments, based upon a 20yr amortization, using a posted mtg rate from one of the 5 major banks. Then calculate the amount of interest paid over the length of the mortgage. Discuss your findings along with are there any other 'hidden costs'.
Systems Analysis And Design
ISBN: 978-1119496489
7th Edition
Authors: Alan Dennis, Barbara Wixom, Roberta M. Roth