1. Consider a home mortgage of $150,000 at a fixed APR of 4.5% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. 2. Someone needs to borrow $11,000 to buy a car and the person has determined that monthly payments of $225 are affordable. The bank offers a 3-year loan at 7% APR, a 4-year loan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain. Question content area bottom Part 1 Which loan best meets the person's needs? (Round to the nearest cent as needed.) A. The first loan best meets the person's needs because the monthly payment of $enter your response here is less than the maximum budgeted amount of $225 per month. B. The second loan best meets the person's needs because the monthly payment of $enter your response here is less than the maximum budgeted amount of $225 per month. C. The third loan best meets the person's needs because the monthly payment of $enter your response here is less than the maximum budgeted amount of $225 per month. D. None of the loans meet the person's needs.
1. Consider a home mortgage of $150,000 at a fixed APR of 4.5% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. 2. Someone needs to borrow $11,000 to buy a car and the person has determined that monthly payments of $225 are affordable. The bank offers a 3-year loan at 7% APR, a 4-year loan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain. Question content area bottom Part 1 Which loan best meets the person's needs? (Round to the nearest cent as needed.) A. The first loan best meets the person's needs because the monthly payment of $enter your response here is less than the maximum budgeted amount of $225 per month. B. The second loan best meets the person's needs because the monthly payment of $enter your response here is less than the maximum budgeted amount of $225 per month. C. The third loan best meets the person's needs because the monthly payment of $enter your response here is less than the maximum budgeted amount of $225 per month. D. None of the loans meet the person's needs.
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
Related questions
Question
1.
Consider a home mortgage of
$150,000
at a fixed APR of
4.5%
for
25
years.a. Calculate the monthly payment.
b. Determine the total amount paid over the term of the loan.
c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest.
2.
A.
B.
C.
D.
Someone needs to borrow
$11,000
to buy a car and the person has determined that monthly payments of
$225
are affordable. The bank offers a
3-year
loan at
7%
APR, a
4-year
loan at
7.5%,
or a
5-year
loan at
8%
APR. Which loan best meets the person's needs? Explain.Question content area bottom
Part 1
Which loan best meets the person's needs?
(Round to the nearest cent as needed.)
The first loan best meets the person's needs because the monthly payment of
$enter your response here
is less than the maximum budgeted amount of
$225
per month.The second loan best meets the person's needs because the monthly payment of
$enter your response here
is less than the maximum budgeted amount of
$225
per month.The third loan best meets the person's needs because the monthly payment of
$enter your response here
is less than the maximum budgeted amount of
$225
per month.None of the loans meet the person's needs.
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