an educator evaluated

SCENARIO #1: A client comes to you with questions about an installment personal loan to buy a car and an insurance question; here are the facts. Client is 27, a hs teacher. He wants to buy a new ca A friend offers to sell him a one year old car with 7,000 miles in excellent condition and asks $22,500 for it. Your client has $8,000 in a savings account he could use for the purchase and he feels he can get another $8,000 from the sale of his car. 1 he is $6,500 short. He tells you he can borrow $6.500 from a bank @ 8% He would repay the loan in equal monthly installments over 3 years. r but is afraid he can't afford to. per year, simple interest. A- Calculate his required monthly payments. B- Compute the (1) finance charges and (2) the APR on this loan. C- Assuming it is not required by the lender, would you recommen d he take te collision insurance for the car? If so, what factors would determine the ra he paid? SCENARIO #2: A married couple come to you to discuss health insurance and which plan out of two offered by the husband's employer they should take; here are the facts. Married couple, two children (one 6 yrs old the other 6 months old). The younger child has congenital health issues which indicate multiple surgeries in the next few years. The plans offered are: Indemnity Plan that pays 80% ofall medical costs with insured paying 20% coinsurance. There is a $500.00 deductible per person. The employer pays entire premium for the husband but it will cost the family $380/month for the wife and children