Reference no: EM131837428
1. Credit Limit. Mary and Marty are interested in obtaining a home equity loan. They purchased their house five years ago for ?$125,000 and it now has a market value of ?$156,000. Originally, Mary and Marty paid ?$25,000 down on the house and took out a ?$100,000 mortgage. The current balance on their mortgage is ?$72,000. The bank uses 70?% of equity in determining the credit limit. What will their credit limit be if the bank uses the market value of equity to determine their credit limit and will loan them 70?% of the? equity?
If the bank uses the market value of equity to determine their credit limit and will loan them 70?% of the? equity, their credit limit will be $
2. Credit Card Fees and Financing. Jarrod has narrowed his choice to two credit cards that may meet his needs. Card A has an APR of 21?%.Card B has an APR of 14?%, but also charges a ?$25 annual fee. Jarrod will not pay off his balance each? month, but will carry a balance forward of about ?$400 each month. Which credit card should he? choose?
His total annual expenses for Card A will be ?$ nothing. ?(Round to the nearest? cent.)
His total annual expenses for Card B will be ?$ nothing. ?(Round to the nearest? cent.)
Jarrod should choose which Card