Question
The following table shows annual rates for various types of loans in 2021. Assume monthly payments and compounding periods. HINT [See Examples 5 and 7.]
The following table shows annual rates for various types of loans in 2021. Assume monthly payments and compounding periods. HINT [See Examples 5 and 7.]
| Loan Type | 30-Year Mortgage | 15-Year Mortgage | New Car Loan | Used Car Loan | Credit Cards |
|---|---|---|---|---|---|
| Rate | 3.03% | 2.30% | 9.20% | 9.45% | 13.99% |
You purchased a new car using a 5-year $25,000 loan in 2021. With the same monthly payments, how much could you have financed had the interest rate been 9.00%? (Do not round the payment amount to the nearest cent. Round the final amount you could have financed to the nearest cent.)
$
With the same monthly payments, how much could you have financed had the interest rate been 9.50%? (Do not round the payment amount to the nearest cent. Round the final amount you could have financed to the nearest cent.)
$
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