1) Nyla's parents purchased their family home for $250,000. Today, the home is worth $325,000. Their remaining mortgage balance is $175,000. Assuming Nyla's parents can borrow up to 85 percent of the market value of their home, what is the maximum amount they can borrow?

2) Nyla wants to buy a used car for $10,000. She plans to trade her Ford Taurus for $2,000 and use the funds as a down payment. The car dealership informs Nyla that she can borrow (finance) $8,000 for five years at an add-on interest rate of 10 percent.

Questions

a. What is the total interest on Nyla's loan?

b. What is the total cost of the car?

c. What is the monthly payment?

3) You have been pricing a computer in several stores. Three stores have an identical price of $1,0 store charges 12 percent APR, has a 30-day grace period, and sends out bills on the first of the further investigation, you find that store A calculates the finance charge using the average daily method, store B uses the adjusted balance method, and that store C uses the previous balance Assume you purchased the computer on October 1 and made a $100 payment on October 3. W finance charge be if you purchase from store A? store B? or store C?