Sally and Timothy are going to take a vacation to Israel. The tour company they are going with

has a special promotion that allows travellers to pay a deposit and then make monthly

payments to cover the cost of the trip. Instead of having to pay for the trip in advance, a total of

$$8,500\mathrm{.}00,$ they decide to pay the deposit of $$1,000\mathrm{.}00$ plus $36$ monthly payments of $$325\mathrm{.}00.$

a$)$ If they use the promotion, what is the total amount that Sally and Timothy will pay for the trip?

b$)$ How much of the total amount paid is considered the interest charge $($or finance charge$)?$

c$)$ Do you think it is wise for Sally and Timothy to use the promotion? Defend your answer with at

least two reasons as to why you think this.

You are considering applying to the bank for a mortgage to purchase a $$495,000$ home. The

bank is offering you a fixed rate of $5\mathrm{.}1\%$ interest, compounded monthly. The bank requires a

down$-$payment of $15\%.$ You decide to amortize the mortgage over $25$ years.

a$)$ How much money will you need for your down$-$payment?

b$)$ What is the principal amount borrowed for the mortgage if you make the required down$-$

payment in a$)?$