Loan interest-saved compared to the five-year loan

Assignment Help Financial Management

Reference no: EM131992544

Loan Interest. Sharon is considering the purchase of a car. After making the down payment, she will finance $12,330. Sharon is offered three maturities. On a four-year loan, Sharon will pay $295.26 per month. On a five-year loan, Sharon's monthly payments will be $244.15. On a six-year loan, they will be $210.21. Sharon rejects the four-year loan, as it is not within her budget. So, Sharon would pay $2,319.00 in interest over the life of the five-year loan. On the six-year loan, Sharon would pay $2,805.12 in interest. If Sharon had been able to afford the four-year loan, how much interest would she have saved compared to the five-year loan?

The interest Sharon would have paid on the four-year loan is: $ (round to nearest cent.)

If Sharon had been able to afford the four-year loan, the amount of interest she would have saved compared to the five-year loan is: $ (round to nearest cent.)

Reference no: EM131992544

Questions Cloud

What are various sources of equity investment : What are various sources of equity investment? What guidelines should entrepreneurs follow when they are selecting a venture capitalist?

Use the binomial option pricing model : Use the binomial option pricing model with ?t = 1/12 (one month) to estimate the price of an American call option with an exercise price of 100.

Marty are interested in obtaining home equity loan : Credit Limit. Mary and Marty are interested in obtaining a home equity loan.

Calculation of adjusted gross income and taxable income : list the steps and items included in the calculation of Adjusted Gross Income and Taxable Income.

Loan interest-saved compared to the five-year loan : Loan Interest. Sharon is considering the purchase of a car. how much interest would she have saved compared to the five-year loan

Forecasted as percentage of revenue and accounts payable : Why are accounts receivable typically forecasted as a percentage of revenue and accounts payable, and inventories as percentages of the cost of goods sold?

Universal toddler stock as market conditions change : As an equity analyst you are concerned with what will happen to the required return to Universal Toddler' stock as market conditions change.

Euro exchange rate for two-year forward contract : The current currency spot rate is $1.31 per euro. what is the likely dollar per euro exchange rate for a 2-year forward contract?

Tax ethics case : Tax Ethics Case. The date is April 14, and Helen Baldwin, CPA tax practitioner, sits at her desk, pondering the tax return before her.

User Account

All Pages