19. Lola Samaria would like an installment loan of $1,200.00 for auto repairs. Walton Savinosand Loan will loan her the money at 15 percent for 12 months. Horton Finance Companywill loan her the money at 18 percent for 24 months. How much will she save by taking theloan with the lowest finance charge?20. Pauline and Eldon Kharche would like to obtain an installment loan of $9,800.00 forreplacement windowsmonths or at an APR of 18 percent for 18 months. Which loan costs less? How much do theKharches save by taking the loan that costs less?their home. They can get the loan at an APR of 15 percent for 24

“Since you have asked multiple questions, we will solve the first question for you. If you want any…

19. Lola Samaria would like an installment loan of $1,200.00 for auto repairs. Walton Savines and Loan will loan her the money at 15 percent for 12 months. Horton Finance Company will loan her the money at 18 percent for 24 months. How much will she save by taking the loan with the lowest finance charge?

19. Lola Samaria would like an installment loan of $1,200.00 for auto repairs. Walton Savines and Loan will loan her the money at 15 percent for 12 months. Horton Finance Company will loan her the money at 18 percent for 24 months. How much will she save by taking the loan with the lowest finance charge?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Karen has a QuikTrip credit card. The card has a balance of $988.62 with an APR of 28.75%. The QuikTrip expects the minimum payment to be 4.1% of the balance. What is Karen’s minimum payment? How long will it take Karen to pay off her QuikTrip credit card? How much interest will Karen pay if she only pays the minimum payment? Show steps
Mila will need $15 000 when she goes to college 5 years from now. She has 2 options for saving the money. Option A: A regular deposit at the end of each month into an account that earns 6.5% per year compounded monthly Option B: A regular deposit at the end of each year into an account that earns 7.1% per year compounded annually Which option should Mila choose? Make a recommendation, then justify it.
Ann Is buying a new home for $365,000. She is choosing between 2 loan options. Loan A is a 15-year mortgage at 5% annual interest with a $25,000 down payment and $2688.70 monthly payment. Loan B is a 30-year mortgage at 4% annual interest with a $10,000 down payment and a $1694.82 monthly payment. Which loan has the lowest total cost? a Loan A is lower cost as it is approximately $111,170 less expensive than Loan B. b Loan B is approximately $87,235 less expensive than Loan A. c Loan B is approximately $52,379 less expensive than Loan A. d Loan A is approximately $102,473 less expensive than Loan B.
14. Nadia takes out a loan of $150,000 to purchase an apartment. The loan is being charged a yearly interest rate of 2.5% applied monthly. Nadia is paying off the loan by making monthly payments of $500.00. (a) How much of Nadia's first payment goes towards paying interest and how much of it goes towards reducing the initial $150,000 loan amount? Show how you found your answers (b) Did Nadia reduce the loan amount she owed more in the first payment or the second payment? Justify.
7
It does not have to be a long explanation.
Angela Montery has a five-year car loan for a Jeep Wrangler at an annual interest rate of 5.7% and a monthly payment of $595.50. After 3 years, Angela decides to purchase a new car. What is the payoff on Angela's loan?
Suppose that you need $30,000 for your last year of college. You could go to a private lending institution and apply for a signature student loan; rates range from 7% to 14%. However, your Aunt Sally is willing to loan you the money from her retirement savings, with no repayment until after graduation. All she asks is that in the meantime you pay her each month the amount of interest that she would otherwise get on her savings (since she needs that to live on), which is 4%.What is your monthly payment to her, and how much interest will you pay her over the year (9 months)?(Fill in the blanks below and give your answers as whole numbers.)The amount of interest per month you would pay Aunt Sally is $__(1)__ .The total interest you will pay her over the year (9 months)is $__(2)__ .
Lynne needs to borrow $10000 for cosmetic surgery. She obtains a loan from her grandmother for 24 months at a simple interest rate of 6.9%. What is the loans future value?
Jessica charges $8500 to a credit card with a 15.54% interest rate. (a) If Jessica makes a payment of $185.56 each month, how many payments will it take to retire the balance? (b) If Jessica doubles the payment to $371.12, how many payments will it take to retire the balance? (c) If Jessica pays $371.12 each month instead of $185.56, how much will she save in interest charges? (a) It will take payments to pay off the debt. (Round up to the nearest integer as needed.)
Tayah is considering buying a new car for which she will need to borrow $23,900. But first, as she learned in FI 3300, Tayah wants to know how much she will have to pay per month on the dealership loan. The loan that Tayah is being offered has a five-year term, requires monthly payments, and has an interest rate of 4.4% p.a. What is the required monthly payment on this loan, assuming that the first payment will be made exactly one month from today? $439.22 $438.69 $444.48 $451.87 $442.74
Jeff has a credit card balance of 100,000. The annual effective interest rate on the credit card is 18%. He takes out a loan from a loan shark with an annual effective interest rate of 8% to pay off his credit card balance. How much does this strategy save Jeff if he pays off the loan in full with a single payment after 18 months?

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