Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The problem: Monica's current debt consists of three types of loans: a bank card, an auto loan and a department store card. She owes a

image text in transcribed
The problem: Monica's current debt consists of three types of loans: a bank card, an auto loan and a department store card. She owes a total of $25,000 and her monthly payments sum to S549.61.The amount she owes, the monthly payment and the interest rates appear in the table below: Loan Type Annual Percentage rate, APR Loan Amount Monthly Payment Bank Card Auto Loan 18% $243.85 S257.88 $ 47.88 5.5% | 15% Department Store Card TOTALS $25,000 $$49.61 Monica is having a hard time meeting the monthly payments and is three loans to reduce her total monthly payments. She could borrow $25,000 to pay off her existing three loans leaving her with a single loan payment to the loan company. She has received a mail offer advertising a $25,000 home equity line of credit based on 7.9% APR amortized over a 10 year term with monthly monthly payments by $385.03.) considering consolidating the payments of $164.58. (This reduces Monica's i. After ten years of makin end of each compounding period, will the loan amount be zero? Use the TVM solver to calculate the FV. Round the answer to the nearest cent g monthly payments of $164.58 at 79% compounded monthly at the TVM Solver 1%- PV= PMT FV P/Y Pmt End 2. How much does Monica pay to the loan company during the 10 years under this offer? 3. How much would the monthly payment have to be in order for Monica to have the debt completely paid off in the 10 years? Use the TVM solver to calculate the PMT. Round the answer to the nearest cent. TVM Solver 1% PMT C/Y Pmt End The problem: Monica's current debt consists of three types of loans: a bank card, an auto loan and a department store card. She owes a total of $25,000 and her monthly payments sum to S549.61.The amount she owes, the monthly payment and the interest rates appear in the table below: Loan Type Annual Percentage rate, APR Loan Amount Monthly Payment Bank Card Auto Loan 18% $243.85 S257.88 $ 47.88 5.5% | 15% Department Store Card TOTALS $25,000 $$49.61 Monica is having a hard time meeting the monthly payments and is three loans to reduce her total monthly payments. She could borrow $25,000 to pay off her existing three loans leaving her with a single loan payment to the loan company. She has received a mail offer advertising a $25,000 home equity line of credit based on 7.9% APR amortized over a 10 year term with monthly monthly payments by $385.03.) considering consolidating the payments of $164.58. (This reduces Monica's i. After ten years of makin end of each compounding period, will the loan amount be zero? Use the TVM solver to calculate the FV. Round the answer to the nearest cent g monthly payments of $164.58 at 79% compounded monthly at the TVM Solver 1%- PV= PMT FV P/Y Pmt End 2. How much does Monica pay to the loan company during the 10 years under this offer? 3. How much would the monthly payment have to be in order for Monica to have the debt completely paid off in the 10 years? Use the TVM solver to calculate the PMT. Round the answer to the nearest cent. TVM Solver 1% PMT C/Y Pmt End

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

4.3 Is sustainability a viable concept for Americas businesses?

Answered: 1 week ago

Question

Problem: Evaluate the integral: I = 1- 1 dx 9

Answered: 1 week ago

Question

Describe the Indian constitution and political system.

Answered: 1 week ago

Question

Explain in detail the developing and developed economy of India

Answered: 1 week ago

Question

Problem: Evaluate the integral: I = X 52+7 - 1)(x+2) dx

Answered: 1 week ago