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Managing Money Project Complete the following four parts of the activity, being sure to show your calculations and provide a clear and fully detailed explanation
Managing Money Project
Complete the following four parts of the activity, being sure to show your calculations and provide a clear and fully detailed explanation of your decision making process for the analysis questions.
Part I: Buying a Car
Rene wants to buy a BMW i Sedan that she found online. The dealer has offered her the following two options for financing:
Rebate Option: No down payment, a $ rebate, and APR. Low APR Option: $ down and APR.
Rene is going to finance the car for years. Calculate the following for each option:
Monthly payment
Total amount of interest paid over the loan term Based on the above information, which option should Rene choose? Why?
Part II: Buying a House
Rene and her husband would like to purchase a home in the Trinity area. She found this one online Bridlewood Dr Trinity for $ and after talking to a Loan Officer at BB&T she has learned some information about current mortgage rates. The Loan Officer further indicated that she would need to pay a down payment and point at closing. Rene wants to finance the home for years with a fixed interest mortgage.
Using this information, calculate the following for the purchase of this house for Rene and her husband:
Down payment
Mortgage amount
Points amount
Monthly payment
Total paid for the house
Interest paid
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