Jack and Danielle are going to be starting their first year of university, and they need a car for the next 4 years.

• Jack decided to lease a brand-new car for 0 down and monthly payment of 353 dollars for 4 years.
• Danielle on the other hand decide to buy a car for 29780 dollars with a down payment of 10% and an interest rate of 0.5% compounded yearly. The term of her loan is 5 years, and she will make monthly payments.

Jack and Danielle will leave after 4 years. Car market projected a depreciation rate of 20% per year. The car would be sold after Danielle leaves.

a. Find the cost of leasing for Jack

b. What is Danielle's monthly payment?

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c. How much did Danielle pay into the car after 4 years?

d. How much loan is left after 4 years?

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e. Who made the better financial decision? And by how much?

2.Marlene needs 35000 dollars to go study Foundations 12 in North Pole. She can make a monthly repayment of 800 and she has the following options. Find out which option is better.

1. She can get a Bank loan at 8% compounded monthly with a 5% down payment.
2. She can get a student line of credit at 14% compounded monthly. There will be no interest for the first year.

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3. Kevin has a credit card balance of $7200. The credit card company charges 19.5% interest compounded daily.

1. How long will it take Kevin to reduce his current credit card balance to half if he pays $250 a month?
2. how long will it take for him to reduce half of his balance to zero?
3. what is the total interest paid?

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4. Kevin is looking to buy gym membership for 20 years. The memberships will cost him 30dollars a month and he must pay everything upfront, which of the following will be the best choice?

1. She can borrow from her best friend with a promise of paying her back at the end of 3 years with one payment at 4% interest rate compounded monthly.
2. She can use her GOLD SUPREME ULTRA credit card that give her an instant 2% rebate. The card has an interest rate of 13% compounded monthly. She will be making monthly payments for 3 years.

c.

She can get a line of credit from her bank that charges her 8% interest compounded monthly with a down payment of 20%. She will be making monthly payments for 3 years.

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