Finance charges on credit card, Financial Management

Assignment Help:

Jack needs to borrow $1,000 for the next year. Bank South will give him the loan at 9 percent. Suncoast bank will give him the loan at 7 percent with a $50 loan origination fee. First National will give him the loan at 6 percent with a $25 loan origination fee. Determine the total interest and fees Jack will be charged in each case. Which loan should Jack choose?

1. Tracy is borrowing $8,000 on a six-year, 11 percent, add-on interest loan. What will tracy's payments be?

2.  Sharon is considering the purchase of a car. After making the down payment, she will finance $15,500. Sharon is offered three maturities. On a four-year loan, Sharon will pay $371.17 per month. On a five-year loan, Sharon's monthly payments will be $306.99.  On a six-year loan, they will be $264.26. Sharon rejects the four-year loan, as it is not within her budget.  How much interest will Sharon pay over the life of the loan on the five-year loan? On the six-year loan? Which should she choose if she bases her decision solely on the total interest paid?

3. Refer to question 4. If Sharon had been able to afford the four-year loan, how much interest would she have saved compared to the five year loan?

46. Bill wants to purchase a new car for $45,000. Bill has no savings, so he needs to finance the entire purchase amount. With no down payment, the interest rate on the loan is 13 percent and the maturity of the loan is 6 years. His monthly payments will be $903.33.  Bill's monthly net cash flows are $583.00. Bill also has a credit card with a $10,000 limit and an interest rate of 18 percent.  If bill uses all of his net cash flows to make the monthly payments on the car, how much will he add each month to his credit card balance if he uses it to finance the remainder of the car? What will the finance charges be on his credit card for the first two months that finance charges apply?


Related Discussions:- Finance charges on credit card

What is commercial papers, Q. What is Commercial Papers? Commercial Pap...

Q. What is Commercial Papers? Commercial Papers: Commercial papers (CPs) are short-term, unsecured securities issued by highly creditworthy large companies. They are issued wit

What is the ratios based on historic cost accounts, What is the Ratios base...

What is the Ratios based on historic cost accounts Ratios based on historic cost accounts don't give a true picture of trends, due to the effects of inflation and different acc

Estimating cash flows in valuation process, The first step in valuati...

The first step in valuation process is to estimate the cash flows that are expected to be received in the future. In debt securities, there are two types of possi

Factors influencing capital structure, FACTORS INFLUENCING CAPITAL STRUCTUR...

FACTORS INFLUENCING CAPITAL STRUCTURE/DETERMINANTS OF THE CAPITAL STRUCTURE 1. Financial leverage (or) Trading on equity it is the make use of long term fixed interest bea

Issuance of securities, Issuance of securities  : Security issues by co...

Issuance of securities  : Security issues by companies are a novel and common way of raising funds that in turn help realize their growth aspirations. It is therefore necessary

Basic of finance, discuss three approaches to short-term financing

discuss three approaches to short-term financing

Restrictions on investments, Restrictions on Investments: A mutual fund...

Restrictions on Investments: A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment

Definition of financial management, Q. Definition of Financial Management? ...

Q. Definition of Financial Management? As-per to Joseph L. Massie 'Financial management is the operational activity of a business that is responsible for obtaining as well as e

Is pro forma financial statements reveals positive trends, What action(s) s...

What action(s) should be taken if analysis of pro forma financial statements reveals positive trends?  Negative trends? When examine the pro forma statements, managers habi

Tax-backed debt, An analyst should first examine the issuers ...

An analyst should first examine the issuers debt structure in order to analyze the tax-backed debts. The debt burden consists of respective direct a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd