Personal Finance: Turning Money into Wealth (7th Edition) (Prentice Hall Series in Finance)
7th Edition
ISBN: 9780133856439
Author: Arthur J. Keown
Publisher: PEARSON
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Question
Chapter 7, Problem 2DC2
Summary Introduction
Case summary:
M has found that her father has been downsized and to ensure that she has sufficient funding for her senior year in the college, she is required to apply for student loan. She has a part time job that pays $375 per month and the expected annual earning after her studies is $30,000. Her parents allowed her to use $10,000 from their home equity loan. She also has to pay $189 per month for auto loan. She is worried to pay for additional loan although her dad is sure that he would find another job.
Characters in the case:
M
Adequate information:
Part time job provide salary of $375 per month.
Expected income after studies is $30,000.
Amount that is available now is $10,000.
Additional monthly payment on auto loan is $189.
To determine:
Monthly payment.
Given information:
Student loan:
PV is $5,000.
i is 8%.
Home equity loan:
PV is $5,000.
i is 9.25%.
n is 10 years.
m is 12.
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Chapter 7 Solutions
Personal Finance: Turning Money into Wealth (7th Edition) (Prentice Hall Series in Finance)
Ch. 7 - Prob. 1PACh. 7 - Prob. 2PACh. 7 - Prob. 3PACh. 7 - Prob. 4PACh. 7 - Prob. 5PACh. 7 - Prob. 6PACh. 7 - Prob. 7PACh. 7 - Prob. 8PACh. 7 - Prob. 9PACh. 7 - Prob. 10PA
Ch. 7 - Prob. 11PACh. 7 - Prob. 12PACh. 7 - Prob. 13PACh. 7 - Prob. 14PACh. 7 - Prob. 15PACh. 7 - Prob. 1DC1Ch. 7 - Prob. 2DC1Ch. 7 - Prob. 3DC1Ch. 7 - Prob. 4DC1Ch. 7 - Prob. 5DC1Ch. 7 - Prob. 6DC1Ch. 7 - Prob. 7DC1Ch. 7 - Prob. 8DC1Ch. 7 - Prob. 1DC2Ch. 7 - Prob. 2DC2Ch. 7 - Prob. 3DC2Ch. 7 - Prob. 4DC2Ch. 7 - Prob. 5DC2Ch. 7 - Prob. 1DC3Ch. 7 - Prob. 2DC3Ch. 7 - Prob. 3DC3Ch. 7 - Prob. 4DC3Ch. 7 - Prob. 5DC3Ch. 7 - Prob. 6DC3Ch. 7 - Prob. 7DC3Ch. 7 - Prob. 8DC3Ch. 7 - Prob. 9DC3Ch. 7 - Prob. 10DC3Ch. 7 - Prob. 11DC3Ch. 7 - Prob. 12DC3
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