Time-share sales provide an opportunity for vacationers to own a resort condo for 1 week (or more) each year forever. The owners may use their week at their own condo or trade the week and vacation elsewhere. Time-share vacation sales usually require payment in full or financing through the time-share company, and interest rates are usually in the 13% to 18% range. Suppose the cost to buy a 1-week time share in a 3-bedroom condo is $21,873. Also suppose a 10% down payment is required, with the balance financed for 15 years at 17%, compounded monthly. (Round your answers to the nearest cent.) (a) Find the monthly payment. $302.95 x (b) Determine the total cost over the life of the loan. $ 56718.3 (c) Suppose maintenance fees for this condo are $400 per year. Find the annual cost of the condo over the life of the loan. Assume that the annual maintenance fees remain constant. $62718.3 X (d) Use part (c) and the 10% down payment to determine the average annual cost for having this vacation condo for 1 week over the life of the loan. $4327.04 X

Time-share sales provide an opportunity for vacationers to own a resort condo for 1 week (or more) each year forever. The owners may use their week at their own condo or trade the week and vacation elsewhere. Time-share vacation sales usually require payment in full or financing through the time-share company, and interest rates are usually in the 13% to 18% range. Suppose the cost to buy a 1-week time share in a 3-bedroom condo is $21,873. Also suppose a 10% down payment is required, with the balance financed for 15 years at 17%, compounded monthly. (Round your answers to the nearest cent.) (a) Find the monthly payment. $302.95 x (b) Determine the total cost over the life of the loan. $ 56718.3 (c) Suppose maintenance fees for this condo are $400 per year. Find the annual cost of the condo over the life of the loan. Assume that the annual maintenance fees remain constant. $62718.3 X (d) Use part (c) and the 10% down payment to determine the average annual cost for having this vacation condo for 1 week over the life of the loan. $4327.04 X

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter9: Obtaining Affordable Housing

Section: Chapter Questions

Problem 2DTM

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Time-share sales provide an opportunity for vacationers to own a resort condo for 1 week (or more) each year forever. The owners may use their week at their own condo or trade the week and vacation elsewhere. Time-share vacation sales usually require payment in full or financing through the time-share company, and interest rates are usually in the 13% to 18% range. Suppose the cost to buy a 1-week time-share in a 3-bedroom condo is $21,853. Also suppose a 10% down payment is required, with the balance financed for 15 years at 17%, compounded monthly. (Round your answers to the nearest cent.) (a) Find the monthly payment.$ (b) Determine the total cost over the life of the loan.$ (c) Suppose maintenance fees for this condo are $400 per year. Find the annual cost of the condo over the life of the loan. Assume that the annual maintenance fees remain constant.$ (d) Use part (c) and the 10% down payment to determine the average annual cost for having this vacation condo for 1 week over the…
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