Reference no: EM132505078
Part I:
Bill and Melinda are a young couple who have just finished college. They have a combined monthly net income of $3,500. Their fixed monthly expenses consist of $975 for rent, a car payment of $267 per month, and a car insurance premium of $68 per month. Their combined expenses per month for gas, utilities, food, clothing and entertainment are $650.
Bill wants to celebrate their successful completion of college by purchasing a brand new $550 television set by using a credit card that has an Annual Percentage Rate (APR) of 19.85%.
If they only pay the minimum monthly payment of $18.50:
Question 1. How long will it take them to pay for the television?
Question 2. What is the total amount they will pay for the television?
Question 3. What is their total cost of using credit to purchase the TV?
Part II:
Melinda would like to purchase a second car. She has found a great used Jeep Grand Cherokee for $18,000. Her bank can offer her the following 2 situations: a 3.75% APR interest rate on a 36 month loan, or a 4.25% APR interest rate on a 60 month loan, using the add-on method for each of these.
Question 1. Calculate the monthly payment for each situation.
Question 2. Determine the total cost of the Jeep for each situation.
Question 3. Using the income and expenses listed on Part I, along with another car insurance premium of $45 per month and $75 in added gas costs, can they afford to buy the Jeep? Explain.
Part III:
Question 1: Bill and Melinda decided to start a family. Their first child, Jennifer, is now 2 and they want to set up an Ordinary Annuity for her college education. They would like to provide Jennifer with $60,000 for her education upon her high school graduation at 18 years old. If the annual interest rate paid on the annuity is 4.5%, how much money will they need to deposit each month to reach this goal?
|
How the massive unemployment caused by the corona pandemic
: Unemployment - How the massive unemployment caused by the Corona Pandemic will be affecting various groups (age, gender, ethnicity, education level)?
|
|
Explain the difference between art and entertainment
: 500-word written response on the difference between Art and Entertainment. Certainly, there are similarities, and Art and Entertainment overlap in many ways.
|
|
How much can afford to withdraw per year
: At the beginning of each year, if they retire with their $2 million nest egg as planned, and their retirement savings will still grow at 5% per year?
|
|
How aaron copeland music and the text evoke spirit of era
: "The Promise of Living" is the finale of Aaron Copeland's opera The Tender Land. Do a little online research on this opera, as well as its connection.
|
|
What is the total amount will pay for the television
: If the annual interest rate paid on the annuity is 4.5%, how much money will they need to deposit each month to reach this goal?
|
|
Write in mathematical form the equilibrium condition
: Indicate how Kayla should spend her income in order to maximise her total utility. Write in mathematical form the equilibrium condition
|
|
Write report on the comparison of two businesses
: This is a report on the comparison of two businesses in the field of the hospitality and tourism industry. Chosen CROWN RESORTS AUSTRALIA AND MACDONALDS
|
|
Is mr carlson suggestion ethical
: Is Mr. Carlson's suggestion ethical? Is it ethical to discontinue the cash dividend? Explain. Mike Stephenson, the president and CEO of Earth Systems
|
|
Income elasticity of demand for exotic holidays
: Given the prices of the two holidays, is the income elasticity of demand for exotic holidays positive or negative?
|