Question: Part 6) This is a 4 part question, please answer the following... 1) Suppose a bank offers you a 10% interest rate on a 20-year
Part 6) This is a 4 part question, please answer the following...
1) Suppose a bank offers you a 10% interest rate on a 20-year mortgage to be paid back with monthly payments. Suppose the most you can afford to pay in monthly payments is $700. How much of a mortgage could you afford?
A) $72,537.23
B) $75,732.25
C) $76,237.53
D) $76,375.32
2) Hudson would like to purchase a new car for $25,000.How much will his monthly payments be if he took out a 5-year loan at 6.5% interest? Show your work
3) Janet borrows $3500 from a credit card company at 22.5% annually for 3 years. Determine Janet's monthly payment. Show your work.
4) Use the amortization table below to answer the following questions. The loan is for 5 years at 5.5% interest on a $30,000 car.
- How much are the yearly payments?_
- If you traded your car in at the end of the 3rdyear (2013) and it was worth $15,500, how much would you get to put towards the new car that you are buying after paying back the bank?_
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