F30 - Unit 8 - Financial Mathematics - Loans\ Hand-In Assignment\ Name\ Lesson 2 - Analyzing Loans\ Date:\ You are purchasing a house for

$375000

. You need to make a

15%

down payment on the home in order to get a mortgage from the bank. The bank is offering a mortgage for the remainder of the cost at

3.4%

, compounded semi-annually, for a 25-year term.\ a) What will each monthly payment be?\ b) What is the interest pard on the house?\ 12\ c) How much did the house cost you overall?\ /2\ Lesson 3 - Exploring Credit Card Use\ You are buying supplies that cost

$4200

and you are going to pay the cost using your credit card and making regular monthly payments of

$225

. You have two different credit cards.\ Credit Card A

15.5%

, compounded daily, and you get a rebate of

$100

for using a new credit card Credit Card B

-12.5%

, compounded daily.\ a) How long will it take to pay off credit card A? How much will it cost? How much interest do you pay?\ /2\ b) How long will it take to pay off credit card B? How much will it cost? How much interest do you pay?\ 12

Lesson 2 -Analyzing Loans You are purchasing a house for $375000. You need to make a 15% down payment on the home in order to get a mortgage from the bank. The bank is offering a mortgage for the remainder of the cost at 3.4%, compounded semi-annually, for a 25 -year term. a) What will each monthly payment be? 12 PYPI PlE 318750 I/y=3.4 4 37500056250=318750 t=25N=(25)(1)=25FN=0PMT b) What is the interest pard on the house? /2 c) How much did the house cost you overall? /2 Lesson 3 - Exploring Credit Card Use You are buying supplies that cost $4200 and you are going to pay the cost using your credit card and making regular monthly payments of $225. You have two different credit cards. Credit Card A 15.5%, compounded daily, and you get a rebate of $100 for using a new credit card Credit Card B 12.5%, compounded daily. a) How long will it take to pay off credit card A? How much will it cost? How much interest do you pay? b) How long will it take to pay off credit card B? How much will it cost? How much interest do you pay