You currently have two loans outstanding: a car loan and a student loan. The car loan requires that you pay $322 per month, starting next month for 34 more months. Your student loan is requires that you pay $145 per month, starting next month for the next 46 months. A debt consolidation company gives you the following offer: It will pay off the balances of your two loans today and then charge you $511 per month for the next 37 months, starting next month. If your investments earn 4.14% APR, compounded monthly, how much would you save or lose by taking the debt consolidation company’s offer? If you lose, state your answer with a negative sign (e.g., -25,126)
You currently have two loans outstanding: a car loan and a student loan. The car loan requires that you pay $322 per month, starting next month for 34 more months. Your student loan is requires that you pay $145 per month, starting next month for the next 46 months. A debt consolidation company gives you the following offer: It will pay off the balances of your two loans today and then charge you $511 per month for the next 37 months, starting next month. If your investments earn 4.14% APR, compounded monthly, how much would you save or lose by taking the debt consolidation company’s offer? If you lose, state your answer with a negative sign (e.g., -25,126)
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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You currently have two loans outstanding: a car loan and a student loan. The car loan requires that you pay $322 per month, starting next month for 34 more months. Your student loan is requires that you pay $145 per month, starting next month for the next 46 months.
A debt consolidation company gives you the following offer: It will pay off the balances of
your two loans today and then charge you $511 per month for the next 37 months, starting
next month. If your investments earn 4.14% APR, compounded monthly, how much would
you save or lose by taking the debt consolidation company’s offer?
If you lose, state your answer with a negative sign (e.g., -25,126)
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