*** PLEASE DO NOT USE PREVIOUS CHEGG ANSWERS***

*** You received a bill consolidation loan offer in the mail. ***

*** Dear Student, ***

*** Im delighted to inform you that you have been approved for a Homeowner Bill Consolidation Loan of up to $365,100 at our lowest fixed rate of 6.00% (6.184% APR). You can use this money for anything you like; to pay off your high-interest debt, pay for college or expenses, take a dream vacation, or whatever you want. There are no restrictions! ***

*** For example, with the following debt consolidation, a typical homeowner would save $1,224.88 per month!! ***

*** Credit CardInterest 21% with a Balance of $12,000 for Monthly Payment of $448.62 ***

*** Auto LoanInterest 8% with a Balance of $15,000 for Monthly Payment of $359.20 ***

*** Student LoanInterest 10% with a Balance of $23,000 for Monthly Payment of $488.68 ***

*** Home MortgageInterest 8% with a Balance of $170,000 for Monthly Payment of $1247.40 ***

*** TOTAL CURRENT DEBT$220,000 for Monthly Payment of $2543.90 ***

*** New Homeowners Bill Consolidation LoanInterest 6% with Balance of $220,000 for Monthly Payment of $1319.09 for SAVINGS of $1224.88 ***

*** First Months Savings = $1224.88 ***

*** First Years Savings = $14,698.56 ***

*** Potential 10-year Savings = $146,985.60 ***

• Do you agree with the savings claims by the loan company?
• Explain any illogical claims made by the loan company.