Chapter3: Financial Statements, Tools, And Budgets
Section: Chapter Questions
Problem 3FPC
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what is the annual interest that you would warn on a $1200 Treasury Bond with a current yield of 1.5% that is quoted at 98 points ?
Transcribed Image Text:Brianna is creating a budget. The expenses she pays monthly are $500 for rent, $120 for gas for her car, $100
for health insurance, $75 for auto insurance, $25 for renters' insurance, $110 for her cell phone, $170 for
utilities, about $320 for groceries, and about $250 for entertainment. In addition, over the entire year she
spends $12,000 for college expenses, about $800 on gifts for family and friends, about $1800 for vacations at
spring and winter break, about $800 on clothes, and $500 in gifts to charity. Her income consists of a monthly,
after-tax paycheck of about $2600 and a $3000 scholarship that she received at the beginning of the school
year.
a) What is the total of Brianna's monthly expenses? $
b) What is the total of Brianna's monthly income? $
c) What is her total monthly cash flow? $
Transcribed Image Text:Suppose that you have a student loan of $50,000 at a fixed APR of 6% for 20 years.
a) Calculate the monthly payment for this loan. $
b) Determine the total amount paid over the term of the loan. $
c) of the total amount paid, what percentage, to the nearest tenth of a percent, is paid toward the principal?
%
d) Of the total amount paid, what percentage, to the nearest tenth of a percent, is paid toward interest?
%
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