questions 3 and 4

3. Using (real) information from a credit card, mortgage, personal loan, or car note, create an amortization schedule showing how long it would take to pay off the Jan in the scheduled monthly payments are made. a. What advice would you give to the holder of the credit card, mortgage, loan, or car note? b. What is the effective rate? 4. See Wall Street Journal, Tuesday September 30, 2003: Personal Journal, Section D: Read article, "A Car Loan That Outlasts Your Car." The article mentioned that a $20,000 loan with an 8% interest rate over 8 years instead of a 5% loan over 5 years will slash payments by approximately $100, but will add $4,500 to interest cost. Problem: Set up amortization schedules for: a. A $30,000 car loan at 6.5% interest rate over 8 years b. A $30,000 car loan at 3.5% interest rate over 5 years. c. Calculate the exact difference in payments. d. Comment on the article using your knowledge of time value of money etions: a spreadsheet problem Follow the muideli Page 53 3. Using (real) information from a credit card, mortgage, personal loan, or car note, create an amortization schedule showing how long it would take to pay off the Jan in the scheduled monthly payments are made. a. What advice would you give to the holder of the credit card, mortgage, loan, or car note? b. What is the effective rate? 4. See Wall Street Journal, Tuesday September 30, 2003: Personal Journal, Section D: Read article, "A Car Loan That Outlasts Your Car." The article mentioned that a $20,000 loan with an 8% interest rate over 8 years instead of a 5% loan over 5 years will slash payments by approximately $100, but will add $4,500 to interest cost. Problem: Set up amortization schedules for: a. A $30,000 car loan at 6.5% interest rate over 8 years b. A $30,000 car loan at 3.5% interest rate over 5 years. c. Calculate the exact difference in payments. d. Comment on the article using your knowledge of time value of money etions: a spreadsheet problem Follow the muideli Page 53