Houda is going to lease a car for one year. She has 2 choices: Make a monthly lease payment of $400 on the first day of each month; or pay the entire lease payment of $4000 today. Assume she an earn 1% every month. Which is her best choice. Show your calculations.
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Houda is going to lease a car for one year. She has 2 choices: Make a monthly lease payment of $400 on the first day of each month; or pay the entire lease payment of $4000 today. Assume she an earn 1% every month. Which is her best choice. Show your calculations.
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- Helen is buying a $12,375 car with a $3,000 down payment, followed by 36 months of $325. The down payment is made immediately, and the monthly payments are due at the end of each month. What nominal annual interest rate is Helen paying? What effective interest rate?If Deborah leases the car, she will pay $549 per month for 3 years with $1,500 due at signing. But, at the end of 3 years, she will have to turn the car in and either lease another car or purchase a car. What would the total amount be that she will pay over the life of the lease?Wilma wants to buy a car that costs $52,000. She has arranged to borrow the total purchase price of the car from her bank at 6 percent interest rate. The loan requires monthly payments for a period of five years. If the first payment is due in one month after purchasing the car, what will be the amount of Wilma’s monthly payment on the loan?
- Helen is buying a $12,375 car with a $3000 down payment, followed by 36 monthly payments of $325 each. The down payment is paid immediately, and the monthly payments are due at the end of each month. What nominal annual interest rate is Helen paying? What effective interest rate?Roberto and Micah plan to purchase a home for $225,000. They will pay 20% down and finance the remainder for 15 years at the APR of 3.7%, compounded monthly. a) How large are the monthly payments? b) What will be their loan balance right after they have made their 180th payment? c) How much interest will they pay during the 15th year of the loan? d) If they were to increase their monthly payments by $100, how long would it take to pay off the loan? Give your answer in whole months.Sarah is planning to purchase a new house. To purchase the house, she will need to borrow $550,000 from the bank. The loan term is 30 years and the terms of the contract require monthly end of period payments (including interest and principle). The current interest rate offered by her bank is 3.5% per annum for a variable rate mortgage loan. If Sarah borrows the money from her bank and the interest rate decreases by 0.5% three years after the mortgage started, what would the new monthly repayment be?
- Reginald is about to lease an apartment for 12 months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are $1,300 per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is $15,180. What is the implied monthly discount rate for the rent? If Reg is earning 0.3% on his savings monthly, should he pay by month or make the one-time payment? What is the implied monthly discount rate for the rent?A couple is trying to decide between renting or buying a house. They could buy a new home with a $15000 down payment, and monthly payments of $750 that would start one month later. Taxes and insurance are expected to reach about $100 per month. The other alternative is to lease a home for $700 per month payable in advance, plus a deposit of $600, which would be returned when the home ics vacated. Servies are estimated at $135 per month, whether you rent or buy. If you expect to be able to sell the house for $10,000 more than you paid for it in 6 years, should you buy or rent, if the nominal annual interest rate is 12% capitalisable monthly? Use present value analysis.Mystia Green is considering the purchase of a house, which will cost her $450,000. She will borrow the entire purchase price and make monthly payments over the next twenty years. The first payment is due next month, and the interest rate is 6.50% per annum (p.a.), compounded monthly She will owe $_________on the house immediately following the 121 st payment.
- Leila wants to buy a Corvette for $84,300 and the dealership has quoted an APR of 7.1%, compounded monthly, for 36 months. How much in total will Leila pay over the life of the loan assuming she make all payments on time?.) Andrea is arranging a $90,000 mortgage loan from her bank. The mortgage is to be amortized by making monthly payments over 20 years. The interest on the loan will be 7.9% compounded semiannually. What is the size of the monthly payments? ____________ What is the outstanding balance after two years (i.e. 24 months)? __________ If Andrea chooses to pay $800 per month to pay off the $90,000 mortgage, how many payments are needed to pay off the debt? ___________ What is the size of the final payment? ____________While buying a new car, Austin made a down payment of $1,000.00 and agreed to make month-end payments of $270.00 for the next 3 years and 4 months. If she was charged an interest rate of 5.00% compounded quarterly for the entire term, answer the following, rounding to the nearest cent. 1. What was the cost of the car when Austin purchased it? Round to the nearest cent 2. What was the total amount of interest paid over the term? Round to the nearest cent
