Oleg (he/him) is considering purchasing a car. He has two options to choose from. He is considering the purchase amountand the loan terms in his decision.Option A: Oleg could purchase a $16,000 used car thatrequires a $2,000 down payment. The loan would last for 6years and he would pay 3.5% interest per year.Option B: Oleg could purchase a $15,000 used car thatdoes not require a down payment. The loan would last for 4years and he would pay 5% interest per year.1. Which option should Oleg choose and why?

Accumulated amount of simple interest is A=P(1+rt) where P is principle amount, 'r' is rate of…

Answered: Oleg (he/him) is considering purchasing…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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The Fritzes are buying a house that sells for $101,000. The bank is requiring a minimum down payment of 20%. To obtain a 40-year mortgage at 11.5% interest, they must pay 3points at the time of closing. Determine the required down payment. Determine the amount of the mortgage on the property with the 20% down payment. Find the cost of 3points on the mortgage
Use the method of cylindrical shells to find the volume generated by rotating the each region around the given axis. (Enter exact answers in terms of πT.) (a) y = 3x - x², x = 0, revolved around the y-axis. 1 (b) y = 1, 1 ≤ x ≤ 30, y = 0, revolved around the y-axis.
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 $32,000 and can be financed with a five-year loan at 7.54%. The used-car option: A three-year old model of the same car costs $15,000 and can be financed with a four-year loan at 6.21%. What is the difference in monthly payments between financing the new car and financing the used car?
Suppose you are thinking about purchasing a small office building for $1,500,000. The 30 year fixed rate mortgage that you have arranged covers 80% of the purchase price and has an interest rate of 8%. Assume you were to default and go into foreclosure in year 10 of this loan. If the lender was able to sell this property for $700,000, how much does the lender stand to lose in the absence of PMI? Multiple Choice $0 $260,000 $92,696 $352,696
Suppose that you decide to buy a car for $57,000, including taxes and license fees. You saved $13,000 for a down payment. The dealer is offering you a choice between two incentives. Incentive A is $3000 off the price of the car, followed by a three-year loan at 7.65%. Incentive B does not have a cash rebate, but provides free financing (no interest) over three years. What is the difference in monthly payments between the two offers? Which incentive is the better deal?(round to the nearest cent)
Ben Halls is trying to decide whether to lease or purchase a new car costing $18,000. If he leases, he’ll have to pay a $600 security deposit and monthly payments of $450 over the 36-month term of the closed-end lease. Ben could earn 1% on the amount of any down payment or security deposit. On the other hand, if he buys the car then he’ll have to make a $2,400 down payment and will finance the balance with a 36-month loan with a 4% interest rate; he’ll also have to pay a 6 per cent sales tax ($1,080) on the purchase price, and he expects the car to have a residual value of $6,500 at the end of 3 years. Ben can earn 4 per cent interest on his savings.Use the automobile lease versus purchase analysis form in ‘ws_Car Lease or Purchase Analysis’ to find the total cost of both the lease and the purchase and then recommend the best strategy for Ben.
On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to receive a base fee of $4,400 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Nolan offered to pay an additional 20% of the base fee if the project finished 2 weeks early and 15% if the project finished a week early. The probability of finishing 2 weeks early is 20% and the probability of finishing a week early is 65%. What is the expected transaction price with variable consideration estimated as the expected value? Multiple Choice $5,005 $4,180 $5,862 $4,400

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