Question
The scenario is designed to help you determine and evaluate the payment amount of a car loan and a mortgage, based on the assumption that
The scenario is designed to help you determine and evaluate the payment amount of a car loan and a mortgage, based on the assumption that your household income is $36,000 per year or $3,000 per month.
Based on your income, you may spend 28% of your monthly income on housing, and 10% on a car loan. You are to put a 3% down payment on the house and a 10% down payment on the car.
Assume a 10% down payment on the car and a 3% down payment on the house. Also, assume that you can get financing for the car at 7% for 60 months, and the house can be financed at 5% for 30 years. How much could you spend on the car and the house? You must submit your calculations in a Microsoft Excel document showing how answers were reached.
Asset | Price | Down payment | Loan Amount | Interest Rate | Interest Rate (monthly) | Term (months) |
Car | 7% | 0.58% | 60 | |||
House | 5% | 0.42% | 360 |
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