Roberto and Julie Hernandez are struggling to make their monthly payments. They have accumulated too much...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Roberto and Julie Hernandez are struggling to make their monthly payments. They have accumulated too much debt, which was easy to do with two young kids at home. Julie works 30 hours a week and takes care of the kids after day care. Their credit history was poor, result- ing in high interest rates on loans. However, a few months ago Roberto added a second job, and they have been making payments regularly for 5 months. 1. Find the monthly payments on each of the following purchases and the total monthly payment. Purchase Honda Accord Ford truck Home 2nd mortgage on home Original Loan Interest Amount Rate $18,800 $14,300 $126,800 $4,500 12% 12% 18% 6,3% Expense Payments on debt from 1. above 2. These monthly expenses do not include car insurance ($215 per month), health insurance ($290 per month), or real estate taxes and insurance on their home ($3350 per year), among other expenses. Find their total monthly outlay for all of these expenses. Term of Loan Car insurance Health insurance Real estate taxes and insurance on home Total Item Honda Accord Ford truck Home 2nd mortgage on home. 4 years 4 years 15 years 3 years Total Car insurance Health insurance Real estate taxes and insurance on home Current Loan Amount 3. A loan officer told them that they can (1) refinance the remaining $14,900 amount on the Honda Accord at 12% over 4 years, (2) refinance the remaining $8600 loan amount on the Ford truck at 12% over 3 years, (3) refinance the remaining $121,850 loan amount on their home at 5% over 30 years, and (4) reduce their car insurance payments by $28 per month. Complete the following table. Monthly Payment Monthly Outlay New Interest Rate New Term of Loan New Monthly Payment 4. Find the reduction in their monthly payments. Part of the savings in the monthly payment came from reducing the interest rates. The remainder of the savings came from extending the loans further into the future, meaning that the Hernandez family will, in the long run, pay more interest. But at least their current bills are reduced by $715.11 per month. Their goal now is to avoid new debt and pay off some of the existing debt. Roberto and Julie Hernandez are struggling to make their monthly payments. They have accumulated too much debt, which was easy to do with two young kids at home. Julie works 30 hours a week and takes care of the kids after day care. Their credit history was poor, result- ing in high interest rates on loans. However, a few months ago Roberto added a second job, and they have been making payments regularly for 5 months. 1. Find the monthly payments on each of the following purchases and the total monthly payment. Purchase Honda Accord Ford truck Home 2nd mortgage on home Original Loan Interest Amount Rate $18,800 $14,300 $126,800 $4,500 12% 12% 18% 6,3% Expense Payments on debt from 1. above 2. These monthly expenses do not include car insurance ($215 per month), health insurance ($290 per month), or real estate taxes and insurance on their home ($3350 per year), among other expenses. Find their total monthly outlay for all of these expenses. Term of Loan Car insurance Health insurance Real estate taxes and insurance on home Total Item Honda Accord Ford truck Home 2nd mortgage on home. 4 years 4 years 15 years 3 years Total Car insurance Health insurance Real estate taxes and insurance on home Current Loan Amount 3. A loan officer told them that they can (1) refinance the remaining $14,900 amount on the Honda Accord at 12% over 4 years, (2) refinance the remaining $8600 loan amount on the Ford truck at 12% over 3 years, (3) refinance the remaining $121,850 loan amount on their home at 5% over 30 years, and (4) reduce their car insurance payments by $28 per month. Complete the following table. Monthly Payment Monthly Outlay New Interest Rate New Term of Loan New Monthly Payment 4. Find the reduction in their monthly payments. Part of the savings in the monthly payment came from reducing the interest rates. The remainder of the savings came from extending the loans further into the future, meaning that the Hernandez family will, in the long run, pay more interest. But at least their current bills are reduced by $715.11 per month. Their goal now is to avoid new debt and pay off some of the existing debt.
Expert Answer:
Answer rating: 100% (QA)
Here are the stepwise workings for each question 1 Monthly payments on loans Honda Accord Loan amoun... View the full answer
Related Book For
Contemporary Business Mathematics With Canadian Applications
ISBN: 9780135285015
12th Edition
Authors: Ali R. Hassanlou, S. A. Hummelbrunner, Kelly Halliday
Posted Date:
Students also viewed these finance questions
-
3. Five workers are available to perform five jobs. The weight for each worker to perform each job is given in Table. The goal is to assign workers to jobs so as to maximize the total weight required...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Sienna has experienced a couple of profitable months and has over $20,600 in disposable income, however she is thinking that she should replace a few of her high-end blenders for the smoothie bar....
-
William sold Section 1245 property for $25,000 in 2015. The property cost $37,000 when it was purchased 5 years ago. The depreciation claimed on the property was $17,000. a. Calculate the adjusted...
-
Edmund Halvor of the controllers office of East Aurora Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2008....
-
Consider the game Chomp from Exercise 1.5 of size \(2 \times 4\), in a game sum with a Nim heap of size 4. What are the winning moves of the starting player I, if any? 00
-
MKM International is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machines are in consideration. Machine 1 costs $500,000, but yields a 15 percent savings over the...
-
CASH FLOW ANALYSIS The statement of cash flows for Yahoo! are as follows: Yahoo! Inc. a. Yahoo!'s operations did not produce significant cash flows during Year 6 and Year 7. How does Yahoo! finance...
-
Complete the payroll register for this pay period and update the Employee Earnings Record form for each employee with the corresponding information. The Step-2 of Form W-4 is unchecked. The amount...
-
Identify the true statement about catalysts. a) Heterogeneous catalysts are always solids. b) Homogeneous catalysts are always liquids. c) Catalysts speed up chemical reactions by increasing the...
-
A. Prove the identity (p or q) = p and q using a truth table. B.Prove the identity p or (q and r) = (p or q) and (p or r) using a truth table
-
Read this article about what professionals should be doing on LinkedIn and complete the worksheet by noting the reasons why the various tasks are important. This article is about lawyers, but the...
-
What is the output of the following code, N=7 S="Wireline Drilling Testing Artificial Lift" Do Until (N <3) S=Left(S,N) & Right (S,N) N=N-2 Loop Labell.Text=S
-
(1) Explain how you will determine the domain and the range. [15] Given: {(3,2), (2,1), (1,0), (2,-1), (3, -2)} Equation Editor AAT BI US x Styles Font Size
-
Computing Cost Pools MaScare Company produces clothing and has identified five overhead cost activities. These activities are shown as the columns in the table below, along with the percentage of...
-
5. and describe its principle of operation in detail. The steel plates of 4.75 mm thickness weld together with an initial temperature of 27C by using welding transformer set at 30 V and 280 A. The...
-
XYZ Inc. a calendar year, accrual basis corporation, had the following items during 2021: Gross revenue from operations Cost of goods sold $420,000 ($180,000) $9,000 LT capital gain .LT capital...
-
Evaluate each of the following. 30 600 2500 12 600
-
Addition and subtraction. Simplify. (3m 2 4m 5) (4 2m 2m 2 )
-
Simplify. (-18) 7
-
Use the product rule to simplify \(a^{4} \times a^{10}\).
-
Convert the following to expressions with no negative exponent: 1. \(3^{4} \times 5^{-8}\) 2. \(a^{-9} \times b^{5}\) 3. \(\frac{7}{c^{-2}}\)
-
Expand the following: 1. \(\left(6^{7} ight)^{3}\) 2. \(\left(b^{12} ight)^{4}\)
Study smarter with the SolutionInn App