To buy a reliable car, you finance $30,000 over 5 years at 4.80%. 

 

a. How much will your monthly payment be? 

b. How much will your total payment be? (Multiply your previous answer by the number of payments you are making.)  

c. How much of that amount is the interest payment?

2. Tired of paying your apartment rent every month, you decide to buy a condo unit. You decide to take out a mortgage of $320,000 for 30 years at 3% monthly. Your monthly payments, according to the formula, will be $1349.13.

a. How much will your TOTAL payment be? (Multiply your previous answer by the number of payments you are making.)

b. How much of that amount is the interest payment?

c. Can you afford a 15-year mortgage at the same rate? In that case, your monthly

payments will be $2209.86. How much are you saving in the interest payment?

Answer rating: 100% (QA)

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