If you need to take out a $20,000 student loan 2 years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with 6.9% interest for 10 years, a federal unsubsidized loan with 5.8% interest for 10 years, or a private loan with 5.0% interest and a term of 15 years? How much would you save over the other options? All payments are deferred for 6 months after graduation and the interest is capitalized. (a) Find the total cost of the subsidized loan. The total cost of the subsidized loan is $ Round your answer to two decimal places, if necessary.

If you need to take out a $20,000 student loan 2 years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with 6.9% interest for 10 years, a federal unsubsidized loan with 5.8% interest for 10 years, or a private loan with 5.0% interest and a term of 15 years? How much would you save over the other options? All payments are deferred for 6 months after graduation and the interest is capitalized. (a) Find the total cost of the subsidized loan. The total cost of the subsidized loan is $ Round your answer to two decimal places, if necessary.

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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Suppose that you decide to buy a car for $63,000, including taxes and license fees. You saved $12,000 for a down payment. The dealer is offering you a choice between two incentives. Incentive A is $6000 off the price of the car, followed by a five-year loan at 7.72%. Incentive B does not have a cash rebate, but provides free financing (no interest) over five years. What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use PMT= The difference in monthly payments between the two offers is $ (Round to the nearest cent as needed.) Which incentive is the better deal? Choose the correct answer below. A. Incentive A is the better deal. B. Incentive B is the better deal. PA n nt 1 - ( 1₁ + -/-) - ² n
(Q) You would like to purchase a home and are interested to find out how much you can borrow. When your lender calculates your debt to income ratio, he determines that your maximum monthly payment can be no more than $3, 200. You would like to have a 30 year fully amortizing loan and the interest rate offered on such a loan is currently 8.5%. Given these constraints, what is the largest loan you can obtain?
You are interested in purchasing a house but unfortunately you don't have any money for a down payment. Luckily the house you are looking at buying is only $325, 000 and the bank currently has an offer where they will lock in your interest rate for the entire length of the mortgage. The rate that they are offering is 4.5% interest over 15 years. Develop a worksheet that will show the monthly payment, the beginning and ending balance for each year of the loan, the annual cost of the loan, and the annual interest paid for each year of the loan. Please show Formulas
Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The new car costs $26,000 and can be financed with a four-year loan at 7.75%. The used-car option: A three-year old model of the same car costs $16,000 and can be financed with a four-year loan at 5.28%. What is the difference in monthly payments between financing the new car and financing the used car? (Round to the nearest cent as needed.)
← You need a loan of $150,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 20-year fixed rate at 6% with closing costs of $2900 and no points. Choice 2: 20-year fixed rate at 5.5% with closing costs of $2900 and 4 points. What is the monthly payment for choice 1? A (Do not round until the final answer. Then round to the nearest cent as needed.)
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely.
After starting your first full-time job out of college, you decide to buy a new car for $12,000. Using Excel, create a complete amortization table for this car-loan: You make 36 equal end- of-month payments. The discount rate is 7.25% compounded monthly. How much would you owe after the 15th payment is made? Use excel to solve
Suppose a graduate student receives a non-subsidized student loan of $11,000 for each of the 4 years the student pursues a PhD. If the annual interest rate is 5% and the student has a 10-year repayment program, what are the student's monthly payments on the loans after graduation? (Round your answer to the nearest cent.)
Soren is ready to purchase a house that costs $300,000. He wants the minimum LTV to avoid PMI. He qualifies for a 15-year fixed-rate loan at 5%, what is the total finance charges? (Choose the answer that is closest to the correct answer.) O $101.640 Ⓒ$98,702 O $120,390 O $101,590 Moving to another question will save this response. A
A family wishes to buy a $235,900 home. - If a conventional lender is willing to loan the family 87% of the price of the home, what will the loan amount be? What will be the down payment with the loan? - If the family decides to obtain an FHA loan instead, what will the minimum down payment be? (FHA loan down payments are 3.5% of the first $25,000 and 5.2% of the balance of the loan). What is the maximum FHA loan the family can obtain?
A chiropractic student receives a 10-year PLUS Loan for $50,000 to complete the last 2 years of the program. If the interest rate of the loan is 5.48% and the student begins repaying the loan 2 years after graduation, what will the student's monthly payments be (in dollars)? (Assume the loan has a deferred payment plan. Round your answer to the nearest cent.)
You are planning to purchase a house that will require a mortgage of $300,000. You find 2 mortgage offers both at the same rate of 2.5%. One is a 30-year mortgage and the other is a 20-year mortgage. You know, without any computation, that the 30-year mortgage will have lower monthly payments than the 20- year mortgage since the rates are the same. A friend advised that before taking the 30-year mortgage offer, you do some mathematical calculations to see if your budget can handle the extra amount of monthly payment for the 20-year mortgage. Answer the following questions based on the given information: 1. How much more money would you have to budget per month to make the monthly payments on the 20- year mortgage instead of the 30-year mortgage? 2. You ask your friend what advantage there is to be paying more per month on the 20-year mortgage. Your friend replies that it is all about total interest. What is the difference between the total interest on each mortgage? Assume that you…

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