9. 13.48 Brad and Zack are twin brothers in many ways, but not identical in their personal financial management. They both decided to buy the same new car and had to provide some financial information to qualify for a $30,000 car loan. Here is a snapshot of their situations. Table Summary: Table divided into three columns compares financial situation of two people for a car loan. The column headers are marked from left to right as: brother; Brad; and Zack. Brother Brad Zack Debt, $ 28,000 200,000 Investments, $ 250,000 50,000 Credit score 725 (Good) 590 (Low)

A person’s credit score can range from 300 to 850. Their car loan rates, based on credit scores and financial history, are predicted to be 3.6% per year (Brad) and 10.7% (Zack). These rates are per year compounded monthly and a total of 60 payments will be made. You are sharing an evening meal with them and you wish to help them understand the differences in their debt versus investments (equity) status and the monthly loan payments they will have to make. Determine the following for them: 1. Current D-E mixes, assuming no other significant financial amounts are unreported. 2. Expected monthly payment and the total amount they will pay over the 5 years. 3. D-E mixes for each brother after the loans are approved.