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 $535$i Sedan that she found online. The dealer has offered her the following two options for financing:

Rebate Option: No down payment, a $$3500$ rebate, and $9\mathrm{.}0\%$ APR. Low APR Option: $$1500$ down and $3\mathrm{.}5\%$ APR.

Rene is going to finance the car for $5$ 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 $$309,900)$ 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 $25\%$ down payment and $1$ point at closing. Rene wants to finance the home for $30$ 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

$.$