Question: Sky needs $6700 for school and has two options. Option A: 5 years at 5% interest with monthly payments of $126.44 Option B: 6 years

Sky needs $6700 for school and has two options. Option A: 5 years at 5% interest with monthly payments of $126.44 Option B: 6 years at 3.5% interest with monthly payments of $103.30 Calculate the total payback on each loan and calculate how much Sky will save by choosing option B. Provide your answer below: Total payback option A = $ Total payback option B = $ Sky will save $ by choosing loan option B

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Sky needs $6700 for school and has two options. Option A: 5 years at 5% interest with monthly payments of $126.44 Option B: 6 years at 3.5% interest with monthly payments of $103.30 Calculate the...

You need $ 8 0 0 0 for school and has two options. Option A: 7 years at 5 % interest with monthly payments of $ 1 1 3 . 0 7 Option B: 8 years at 4 . 5 % interest with monthly payments of $ 9 9 . 3 9...

on.com/learn/course/c9bde9b1-67df-4612-b8ce-0767a9ac1489/assignment/580cafdb-3b37-436a-8101-5ddeee//B00! Alta 30697 MAT142 TOPICS IN COLLEGE MATH + Ch. 3.6.3: Other Applications Involving Loans...

Miles needs a student loan to finish his last year of school. He needs $ 24 , 600 and has two options. Option A: 10 years at 5 % interest with monthly payments of $ 260.92 Option B: 15 years at 5.5 %...

1) David needs to take out a $800 short term loan to pay for tuition. The school offers him two options. Option One - He pays the $800 and a $75 processing fee or Option Two - He pays the $800 with...

This a question from an "Interest Theory" course: 8. (10 points) A loan amount of 180000 can be repaid under the following two options: Option A: The loan and all interest due will be paid at the end...

just these two options Option 3) 5 year Balloon in which the 60 monthly payments are based on the payments of the 30 year loan and the 61st payment is for the (large) difference (this is kinda like...

Question no 01:Marks (20) Mr. Ahmed has just received his Bonus and he is looking for a suitable investment option that will repay him in long term. He has consulted his friend to invest RS 100,000...

Please answer the following questions using Excel: You won the lottery and you need to choose between these two options: Option A: You receive $10,000 today, and 5 payments of $2,000 each for the...

1. Compute the PV of $4,800 paid in two years using the following discount rates First year interest Second year interest PV 2. For each of the following, compute PV PV Years 13 4 29 40 3. Solve for...

? Consider the equation x = 8. (a) Sketch the functions in this equation and then use this to explain why there is one solution. (b) Find a two-term asymptotic expansion, for small &, of the solution.

Find a longest common subsequence (LCS) of two DNA sequences and fill the following table using the method described in the course. S1= CGATAG S2=GCATA C G A T A G C A A Remember: When you fill in a...

The rate of retum an investor eams on a bond prior to adjusting for inflation is called the: real rate. ditymate nominstrate: ciemrate. coupontate:

2023 1040 form 1.Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent...