TVM SOLVER:

Home Equity Loan Work the Mail Solicitation Home Equity Loan project described on page 417 of the text, 12th edition and pasted below. I encourage you to use the TVM Solver on your calculator. If you do, please show me what your substitutions are (all of them), but other than that, you dont need to give me any kind of flashy write- up. NOTES (Read these!) (a) Use TVM Solver. You should get a somewhat surprising answer to (a)the loan is not all it appears. (b) This is a simple calculation that does not need the TVM Solver. (c) Debt = total debt. Use TVM Solver. (d) For part (d), you need to calculate the pay-off period FOR EACH LOAN SEPARATELY. There are three separate loans (bank cards, auto loan, department store cards): do three separate calculations and give three separate answers, each rounded to the nearest month.

I need to specifically use TVM solver for this one. Im having a really hard time with a-d. Any and all help is greatly appreciated! :)

1.Mail Solicitation Home Equity Loan: Is This a Good Deal? Discover offers a home equity line of credit that lowers the total of the monthly payments on several hypothetical loans by $366.12. (See the following table.) The home equity loan payment is based on "10.49% APR annualized over a 10-year term." This means that the loan is amortized at 10.49% with monthly payments. (a) Using this interest rate and monthly payments for the 10 years, how much money will still be owed at the end of the 10 years? (b) How much is paid during the 10 years? (c) How much would the payment have to be for the debt to be paid in the 10 years? (d) How long would it take to pay off the debts under the original plan if interest were 15% on each loan? Loan Type Current Monthly Payment Discover Home Equity Example Loan Monthly Loan Monthly Amount Payment Amount Payment $10,000 $186.00 PAID OFF NONE $12,500 $320.03 PAID OFF NONE $2,500 $78.63 PAID OFF NONE Bank cards Auto loan Department store cards Discover home equity line of credit Total $25,000 $218.54 $25,000 $584.66 $25,000 $218.54 Source: Discover Loan Center maller