5) One will borrow to purchase a car and will pay off the loan over 60 months (5 years). If the interest rate is 1% per month (12% per year), and the most they can pay is $400 per month; what is the maximum they can borrow? 6) One will borrow $500,000 to buy a home, will pay off

 

Transcribed Image Text:

5) One will borrow to purchase a car and will pay off the loan over 60 months (5 years). If the interest rate is 1% per month (12% per year), and the most they can pay is $400 per month; what is the maximum they can borrow? 6) One will borrow $500,000 to buy a home, will pay off the loan over 360 months (30 years) and the interest rate is .5% per month (6% per year). What is their monthly payment?

Expert Answer