Financial Life Calculator Questions Mary and Mike are friends and each of them wants to buy a used car After reviewing their budgets each of them decides that they want a maximum monthly car payment of $350 each Mary has excellent credit and can qualify for a 60 month car loan at 3 5 Mike has bad credit and can qualify for a 60 month car payment at 18 How much car can Mary afford to buy How much car can Mike afford to buy How much in interest will Mary pay over the life of her loan How much in interest will Mike pay over the life of his loan Assume the same facts regarding interest rates and a 60 month term, as outlined in question 1 above, for Mary and Mike Now assume that both decide they want to buy a used car that costs $17,500 What is Marys monthly payment What is Mikes monthly payment How much more in interest will Mike pay over the life of his loan Ralph is considering taking a vacation that will cost $2,000 using his credit card The interest rate on his credit card is 21 99 If the credit card company requires a minimum monthly payment of $40 a month, how long will it take Ralph to pay off the credit card assuming he only pays the minimum monthly payment Assuming the facts above, how much interest will Ralph pay over the life of this credit card debt Rather than make the minimum monthly payment, Ralph decides to pay an extra $25 a month on the credit card debt ($65 total) How long will it take him to pay off the credit card debt and how much interest expense will he save (compared to just making the minimum $40 payment) Scott stops at the coffee shop every morning for a large coffee He also eats lunch out 5 days a week He figures that if he made his own coffee and brought his lunch he could save $45 a week or $195 per month This is something Scott is committed to doing for the rest of his working life If Scott is 20 years old now and would like to retire at age 65 How much will he have at retirement if he can invest the money and make a 7 return How much will he have at retirement if can invest the money and make a 10 return Sue has excellent credit and is interested in buying a home The bank is offering 3 7 interest for a 30 year fixed rate mortgage If Sue is interested in buying a home for $182,500, what would here monthly mortgage (principal and interest) payment be

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Financial Life Calculator Questions:

Mary and Mike are friends and each of them wants to buy a used car. After reviewing their budgets each of them decides that they want a maximum monthly car payment of $350 each. Mary has excellent credit and can qualify for a 60 month car loan at 3.5%. Mike has bad credit and can qualify for a 60 month car payment at 18%.
How much car can Mary afford to buy?
How much car can Mike afford to buy?
How much in interest will Mary pay over the life of her loan?
How much in interest will Mike pay over the life of his loan

Assume the same facts regarding interest rates and a 60 month term, as outlined in question 1 above, for Mary and Mike. Now assume that both decide they want to buy a used car that costs $17,500.
What is Marys monthly payment?
What is Mikes monthly payment?
How much more in interest will Mike pay over the life of his loan

Ralph is considering taking a vacation that will cost $2,000 using his credit card. The interest rate on his credit card is 21.99%
If the credit card company requires a minimum monthly payment of $40 a month, how long will it take Ralph to pay off the credit card assuming he only pays the minimum monthly payment?
Assuming the facts above, how much interest will Ralph pay over the life of this credit card debt.
Rather than make the minimum monthly payment, Ralph decides to pay an extra $25 a month on the credit card debt ($65 total). How long will it take him to pay off the credit card debt and how much interest expense will he save (compared to just making the minimum $40 payment)?

Scott stops at the coffee shop every morning for a large coffee. He also eats lunch out 5 days a week. He figures that if he made his own coffee and brought his lunch he could save $45 a week or $195 per month. This is something Scott is committed to doing for the rest of his working life. If Scott is 20 years old now and would like to retire at age 65
How much will he have at retirement if he can invest the money and make a 7% return?
How much will he have at retirement if can invest the money and make a 10% return?

Sue has excellent credit and is interested in buying a home. The bank is offering 3.7% interest for a 30 year fixed rate mortgage. If Sue is interested in buying a home for $182,500, what would here monthly mortgage (principal and interest) payment be?