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 three-year loan at 6.25%.The used-car option: A three-year old model of the same car costs $13,000 and can be financed with a five-year loan at 5.91%.What is the difference in monthly payments between financing the new car and financing the used car? Use PMT=The difference in monthly payments between financing the new car and financing the used car is $.(Round to the nearest cent as needed.)P(A)Р[₁-(₁ + -)-nt]

Answered: Image /qna-images/answer/7c5a5c03-1a6c-4e56-adea-72a683f728e2.jpg

Answered: Suppose that you are thinking about…

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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Trevor plans on getting a $166,000 loan for 30 years to purchase a home. Lender A offers him a 5% fixed interest rate, while Lender B is willing to give him a rate of 4.5%. How much less will the monthly payment be with Lender B?
You have to make some home improvements—well, to be honest, they’re really maintenance that you can’t defer any longer!—and need to borrow $3000 to pay for them. You can get an 8.7% add-on loan from a savings and loan association to be repaid in installments over 2 years. How much is your monthly payment? (Round your answer to two decimal places.)
You need to take out a loan of $20,000 to start up your T-shirt business. You have two possibilities: one bank is offering a 10% loan for 5 years, and another is offering a 9% loan for 4 years. Which loan has the lower monthly payments?
Suppose you take out a 30 year $250,000 mortgage with an APR of 6%. You make payments for 3 years (36 months payments) and then consider refinancing the original loan. The new loan would have a term of 20 years, have an APR of 5.2%, and be in the amount of the unpaid balance on the original loan. (The amount you boron on the new loan would be used to pay off the balance on the original loan.). The administrative cost of taking out the second loan would be $2200. Use the information to complete part (A) What are the monthly payments on the original loan?
Mr. Spendit's credit card shows that for the billing period of June 24th through July 28th he made a payment of $100 on June 29th, bought gas on July1 for $42, and had dinner on July 3rd at a cost of $55.. With a previous balance of $506, find the average daily balance. With a 21% rate find the finance charge for this billing period,
Suppose you take out a loan for 160 days in the amount of $14,000 at 7% ordinary interest. After 30 days, you make a partial payment of $1,500. After another 60 days, you make a second partial payment of $4,000. What is the final amount (in $) due on the loan? (Round your answer to the nearest cent.)
If Richard pays the minimum payment of $20.00 and the interest rate for his credit card is 2.1% per month, how much is the finance charge for the month?
A T-bill is a type of bond that is sold at a discount over the face value. For example, suppose you buy a 13-week T-bill with a face value of $10,000 for $9,800. This means that in 13 weeks, the government will give you the face value, earning you $200. What annual interest rate have you earned?
Suppose you decide to wait 5 years to save up before buying the house. You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank. Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly payments.The bank charges 0.35% per month on the unpaid balance (4.2% per year compounded monthly).
Your employer is converting from a semimonthly pay period to biweekly pays. If you currently make $1,044.13 semimonthly, then what should your biweekly pay be in future? Round to the nearest cent.
You plan to purchase a house for $575,000 and you will make a 20% down payment. You are evaluating two mortgages a 30-year fixed mortgage at 2.62% and a 15-year fixed mortgage at 2.15%. Your goal is to have a monthly payment that fits within your budget. a. Which mortgage will give you the lowest monthly payment? What will that payment be? How much less will this be than the other monthly mortgage payment? b. Assuming you take the full term of the mortgage, which mortgage will result in you paying the most interest? What will that interest be? How much less will this be than the interest on the other mortgage?
Compare the monthly payment and total payment for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. You need a $180,000 loan. Option 1: a 30-year loan at an APR of 7.5%. Option 2: a 15-year loan at an APR of 6.5%. Find the monthly payment for each option. The monthly payment for option 1 is $ The monthly payment for option 2 is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the total payment for each option. The total payment for option 1 is $ The total payment for option 2 is $ (Round to the nearest cent as needed.) Compare the two options. Which appears to be the better option? OA. Option 1 will the better option. OB. Option 1 is the better option, but only if the borrower plans to stay in the same home for the entire term of the loan. OC. Option 2 is the better option, but only if the borrower can afford the higher monthly payments over the entire term of the loan. OD. Option 2 will…

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