UNWMVYOcciwm/UM2d/edit YouTube Maps al Singh - Business Graded Unit: Finance Case Study and Questions * ew Insert Format Tools Add-ons Help Last edit was 1 hour ago 100% Normal text Arial IE E- 11 I UA GD + 1 2 3 4 617B Samuel and Miranda's Story: 10 11 14 15 16 1 Samuel Reyes has been living in the United States for five years. He started working after he had been here for six months. He is 26 years old and got married one year ago. They do not have any children yet. Samuel is a custodian at an office building at night. He works for company called Clean by Dawn and has been with them for three years. He makes $8.50 an hour, but he doesn't have any benefits. In other words, his company doesn't give him health insurance or any paid days off. His wife, Miranda, is 24 years old. She works part-time as a cashier in an electronics store called Electronics Depot, and she makes $7.75 an hour. If Samuel had a car, he could get a custodial position in the school district. He would make $10.15 an hour and receive benefits. He needs a car because custodians must travel to different schools when they are first hired. Samuel and Miranda have been saving money for a down payment on a car or small truck. A down payment is the money you pay to the car dealer when you purchase the car. The larger the down payment you give, the less you will have to borrow. Since they have been married, Samuel and Miranda have been putting $100 a month into a special savings club to save for the down payment. (1 mark) 1. How much money have Samuel and Miranda saved together? When he was single, Samuel saved an average of $40 per month. 2. How much did Samuel save when he was single? Samuel and Miranda decide to use half of Samuel's savings for the down payment in addition to the money they have saved together. How much will they give for the down payment? 3. Now, Samuel and Miranda have for a down payment. (1 mark) But before they shop for a loan they need to think about how much they can afford to pay each month. Samuel grosses about $1400 per month, but after taxes and insurance, his take-home ch JUIS Add-ons Help Last edit was 1 hour ago Normal text Arial 11 GD + 4 13 T 11 2 13 14 15 LICZB09 10 11 12 13 14 15 16 Samuel and Miranda have been saving money for a down payment on a car small truck. A down payment is the money you pay to the car dealer when you purchase the car. The larger the down payment you give, the less you will have to borrow. Since they have been married, Samuel and Miranda have been putting $100 a month into a special savings club to save for the down payment. 1. How much money have Samuel and Miranda saved together? When he was single, Samuel saved an average of $40 per month. (1 mark) 2. How much did Samuel save when he was single? Samuel and Miranda decide to use half of Samuel's savings for the down payment in addition to the money they have saved together. How much will they give for the down payment? 3. Now, Samuel and Miranda have for a down payment. (1 mark) But before they shop for a loan, they need to think about how much they can afford to pay each month. Samuel grosses about $1400 per month, but, after taxes and insurance, his take-home pay is approximately $1200. Miranda earns $950 per month, but her net pay is only about $810. 4. What do Samuel and Miranda take home in pay each month? (1 mark) 2002, San Diego Centers for Education & Technology Basic Banking: Unit 1, Lesson 4 o C Dusiness Graded Unit: Finance Case Study and Questions Insert Format Tools Add-ons Help Last edit was 1 hour ago 00% Normal text Arial 11 B I A GO 11 23 E-E- 567 9 10 11.12.13 10 CodeCore College Business Graded Unit Finance Case Study and Questions Samuel and Miranda have the following fixed monthly expenses: rent - $750; gas and electric - $45; telephone - $55; food - $300; transportation -- $150, money sent to families $200. 5. What are their fixed expenses each month? (1 mark) They would also like to continue saving at least $100 a month to save for a down payment on a house. 6. If they save $100 per month, how much monthly income remains? (1 mark) Finally, everyone needs to have money available for "rainy days", emergencies or unexpected expenses. ("Rainy days" is an idiom which means hard or difficult times.) 7. What are some things that could happen to Samuel and Miranda that would make their money situation more difficult? (2 marks) 8. How much do you think they could safely spend on a car payment each month? (3 marks) Explain Now, Samuel and Miranda are ready to shop for a loan. O YouTube 9 Maps al Singh - Business Graded Unit: Finance Case Study and Questions ew Insert Format Tools Add-ons Help Last edit was 1 hour ago 100% Normal text Arial GD + B TU A 1 1 2 3 4 5 67 house E 10 11 12 13 14 6. If they save $100 per month, how much monthly income remains? (1 mark) Finally, everyone needs to have money available for "rainy days", emergencies or unexpected expenses. ("Rainy days" is an idiom which means hard or difficult times.) 7. What are some things that could happen to Samuel and Miranda that would make their money situation more difficult? (2 marks) 8 How much do you think they could safely spend on a car payment each month? (3 marks) Explain Now, Samuel and Miranda are ready to shop for a loan. Which loan? Samuel and Miranda decide that they will need to spend about $10,000 to get the car they want. They plan to buy a used car, but they don't want it to be over three years old. They want it to have a warranty because they don't want to worry about repair costs right away. They are looking at four different places for their loan. At their bank, they have three options. Then, they find a loan with a lower interest rate at a local credit union. Next, they find a loan with a low monthly payment on the internet. Finally, they ask the car dealer what he can offer. California Mutual Bank (Samuel and Miranda's bank) Loan Purchase Down Amount Length Interest Monthly Total Total Cost # Price Payment Financed of Loan Rate Payment Interest (down (in to be Dayment h 120L Cedil Maps Business Graded Unit: Finance Case Study and Questions to Format Tools Add-ons Help Last edit was 1 hour ago Normal text Arial 11 B I U 1 1 2 13 4 15 16 17 18 9 10 11 12 13 14 15 Which loan? Samuel and Miranda decide that they will need to spend about $10,000 to get the car they want. They plan to buy a used car, but they don't want it to be over three years old. They want it to have a warranty because they don't want to worry about repair costs right away. They are looking at four different places for their loan. At their bank, they have three options. Then, they find a loan with a lower interest rate at a local credit union. Next, they find a loan with a low monthly payment on the internet. Finally, they ask the car dealer what he can offer. California Mutual Bank (Samuel and Miranda's bank) Loan Purchase Down Amount Length Interest Monthly Total Total Cost Price Payment Financed of Loan Rate Payment Interest (down (in to be payment months) Paid principal interest A $10,000 $2,000 $8,000 36 7.5% $249 $959 $10.959 B $10,000 $2,000 $8,000 48 8.25% $196 $1420 $11,420 $10,000 $2,000 $8,000 60 8.25% $163 $1790 $11.790 2002, San Diego Centers for Education & Technology Basic Banking: Unit 1, Lesson 4 Finderpal Singh - Business Graded Unit: Finance Case Study and Questions Edit View Insert Format Tools Add-ons Help Last edit was 1 hour ago 100% Normal text Arial 11 B T U A GO + 11 12 13 14 15 16 17 18 19 10 1E - - * 11 Finance Case Study and Questions West Coast Federal Credit Union Loon Purchase Down Amount Length Interest Monthly Total Payment Financed of Loon Rate Payment Interest (in to be months) Paid Price Total Cast (down payment principal interest) $10 860 D $10.000 $2,000 $8,000 36 6.75% $246 $860 Loans R Us Online Loan Purchase Down Amount Length Interest Monthly Total # Price Payment Financed of Loan Rate Total Cost Payment Interest (down (in to be payment - months) Paid principal interest) E $10,000 $2,000 $8,000 72 8.5% $142 $2240 $12,240 What is best about this loan - the monthly payment or the interest rate? Joe Friendly Used Cars Loan Purchase Down Amount Length Interest Monthly Total Total Cost # Price Payment Financed of Loan Rate Payment Interest (down (in to be payment months) Paid principal interest) F $10.000 $2.000 $8.000 60 9.15% $167 $1999 $11.999 to search 44 GD 1.1.2.1.3 1.4 1.56 13 TON 8 9 10 11 12 13 TOON 14 15 What is best about this loan - the monthly payment or the interest rate? Joe Friendly Used Cars Loan Purchase Down Amount Length Interest Monthly Total Total Cost Price Payment Financed of Loan Rate Payment Interest (down (in to be payment months) Pald principal Interest) $10,000 $2,000 $8,000 60 9.15% $167 $1999 $11,999 F 9. What is best about a loan - its interest rate or its monthly payment? Why? (1 mark) 10. Answer the following questions about all the loans: 1. Which loan has the lowest monthly payment? (1 mark) 2. Which loan has the highest monthly payment? (1 mark) 3. Which loan has the lowest interest rate? (1 mark) 4. Which loan has the highest interest rate? (1 mark) 5. What is the lowest total cost? (1 mark) 2002, San Diego Centers for Education & Technology Basic Banking: Unit 1, Lesson 4 O (hp Lom/document/d/1ZhOhcB7Asedmikalnom MIVB WmUM ocedit uTube Maps gh - Business Graded Unit: Finance Case Study and Questions insert Format Tools Add-ons Help Last edit was 1 hour ago Normal text Arial 11 BIU A GO Finance case study and Questions 6. What is the highest total cost? (1 mark) 7. How many years is: (4 marks) a. 36 months? b 48 months? c. 60 months? d. 72 months? 8. Which loans have lower interest rates - shorter loans or longer loans?(1 mark) 9. Which loans have lower monthly payments - shorter loans or longer loans? (1 mark) 10. Discuss which loan you think is best for Samuel and Miranda. Which one do you recommend? Explain your reasons for choosing this loan. (2 marks) O B UNWMVYOcciwm/UM2d/edit YouTube Maps al Singh - Business Graded Unit: Finance Case Study and Questions * ew Insert Format Tools Add-ons Help Last edit was 1 hour ago 100% Normal text Arial IE E- 11 I UA GD + 1 2 3 4 617B Samuel and Miranda's Story: 10 11 14 15 16 1 Samuel Reyes has been living in the United States for five years. He started working after he had been here for six months. He is 26 years old and got married one year ago. They do not have any children yet. Samuel is a custodian at an office building at night. He works for company called Clean by Dawn and has been with them for three years. He makes $8.50 an hour, but he doesn't have any benefits. In other words, his company doesn't give him health insurance or any paid days off. His wife, Miranda, is 24 years old. She works part-time as a cashier in an electronics store called Electronics Depot, and she makes $7.75 an hour. If Samuel had a car, he could get a custodial position in the school district. He would make $10.15 an hour and receive benefits. He needs a car because custodians must travel to different schools when they are first hired. Samuel and Miranda have been saving money for a down payment on a car or small truck. A down payment is the money you pay to the car dealer when you purchase the car. The larger the down payment you give, the less you will have to borrow. Since they have been married, Samuel and Miranda have been putting $100 a month into a special savings club to save for the down payment. (1 mark) 1. How much money have Samuel and Miranda saved together? When he was single, Samuel saved an average of $40 per month. 2. How much did Samuel save when he was single? Samuel and Miranda decide to use half of Samuel's savings for the down payment in addition to the money they have saved together. How much will they give for the down payment? 3. Now, Samuel and Miranda have for a down payment. (1 mark) But before they shop for a loan they need to think about how much they can afford to pay each month. Samuel grosses about $1400 per month, but after taxes and insurance, his take-home ch JUIS Add-ons Help Last edit was 1 hour ago Normal text Arial 11 GD + 4 13 T 11 2 13 14 15 LICZB09 10 11 12 13 14 15 16 Samuel and Miranda have been saving money for a down payment on a car small truck. A down payment is the money you pay to the car dealer when you purchase the car. The larger the down payment you give, the less you will have to borrow. Since they have been married, Samuel and Miranda have been putting $100 a month into a special savings club to save for the down payment. 1. How much money have Samuel and Miranda saved together? When he was single, Samuel saved an average of $40 per month. (1 mark) 2. How much did Samuel save when he was single? Samuel and Miranda decide to use half of Samuel's savings for the down payment in addition to the money they have saved together. How much will they give for the down payment? 3. Now, Samuel and Miranda have for a down payment. (1 mark) But before they shop for a loan, they need to think about how much they can afford to pay each month. Samuel grosses about $1400 per month, but, after taxes and insurance, his take-home pay is approximately $1200. Miranda earns $950 per month, but her net pay is only about $810. 4. What do Samuel and Miranda take home in pay each month? (1 mark) 2002, San Diego Centers for Education & Technology Basic Banking: Unit 1, Lesson 4 o C Dusiness Graded Unit: Finance Case Study and Questions Insert Format Tools Add-ons Help Last edit was 1 hour ago 00% Normal text Arial 11 B I A GO 11 23 E-E- 567 9 10 11.12.13 10 CodeCore College Business Graded Unit Finance Case Study and Questions Samuel and Miranda have the following fixed monthly expenses: rent - $750; gas and electric - $45; telephone - $55; food - $300; transportation -- $150, money sent to families $200. 5. What are their fixed expenses each month? (1 mark) They would also like to continue saving at least $100 a month to save for a down payment on a house. 6. If they save $100 per month, how much monthly income remains? (1 mark) Finally, everyone needs to have money available for "rainy days", emergencies or unexpected expenses. ("Rainy days" is an idiom which means hard or difficult times.) 7. What are some things that could happen to Samuel and Miranda that would make their money situation more difficult? (2 marks) 8. How much do you think they could safely spend on a car payment each month? (3 marks) Explain Now, Samuel and Miranda are ready to shop for a loan. O YouTube 9 Maps al Singh - Business Graded Unit: Finance Case Study and Questions ew Insert Format Tools Add-ons Help Last edit was 1 hour ago 100% Normal text Arial GD + B TU A 1 1 2 3 4 5 67 house E 10 11 12 13 14 6. If they save $100 per month, how much monthly income remains? (1 mark) Finally, everyone needs to have money available for "rainy days", emergencies or unexpected expenses. ("Rainy days" is an idiom which means hard or difficult times.) 7. What are some things that could happen to Samuel and Miranda that would make their money situation more difficult? (2 marks) 8 How much do you think they could safely spend on a car payment each month? (3 marks) Explain Now, Samuel and Miranda are ready to shop for a loan. Which loan? Samuel and Miranda decide that they will need to spend about $10,000 to get the car they want. They plan to buy a used car, but they don't want it to be over three years old. They want it to have a warranty because they don't want to worry about repair costs right away. They are looking at four different places for their loan. At their bank, they have three options. Then, they find a loan with a lower interest rate at a local credit union. Next, they find a loan with a low monthly payment on the internet. Finally, they ask the car dealer what he can offer. California Mutual Bank (Samuel and Miranda's bank) Loan Purchase Down Amount Length Interest Monthly Total Total Cost # Price Payment Financed of Loan Rate Payment Interest (down (in to be Dayment h 120L Cedil Maps Business Graded Unit: Finance Case Study and Questions to Format Tools Add-ons Help Last edit was 1 hour ago Normal text Arial 11 B I U 1 1 2 13 4 15 16 17 18 9 10 11 12 13 14 15 Which loan? Samuel and Miranda decide that they will need to spend about $10,000 to get the car they want. They plan to buy a used car, but they don't want it to be over three years old. They want it to have a warranty because they don't want to worry about repair costs right away. They are looking at four different places for their loan. At their bank, they have three options. Then, they find a loan with a lower interest rate at a local credit union. Next, they find a loan with a low monthly payment on the internet. Finally, they ask the car dealer what he can offer. California Mutual Bank (Samuel and Miranda's bank) Loan Purchase Down Amount Length Interest Monthly Total Total Cost Price Payment Financed of Loan Rate Payment Interest (down (in to be payment months) Paid principal interest A $10,000 $2,000 $8,000 36 7.5% $249 $959 $10.959 B $10,000 $2,000 $8,000 48 8.25% $196 $1420 $11,420 $10,000 $2,000 $8,000 60 8.25% $163 $1790 $11.790 2002, San Diego Centers for Education & Technology Basic Banking: Unit 1, Lesson 4 Finderpal Singh - Business Graded Unit: Finance Case Study and Questions Edit View Insert Format Tools Add-ons Help Last edit was 1 hour ago 100% Normal text Arial 11 B T U A GO + 11 12 13 14 15 16 17 18 19 10 1E - - * 11 Finance Case Study and Questions West Coast Federal Credit Union Loon Purchase Down Amount Length Interest Monthly Total Payment Financed of Loon Rate Payment Interest (in to be months) Paid Price Total Cast (down payment principal interest) $10 860 D $10.000 $2,000 $8,000 36 6.75% $246 $860 Loans R Us Online Loan Purchase Down Amount Length Interest Monthly Total # Price Payment Financed of Loan Rate Total Cost Payment Interest (down (in to be payment - months) Paid principal interest) E $10,000 $2,000 $8,000 72 8.5% $142 $2240 $12,240 What is best about this loan - the monthly payment or the interest rate? Joe Friendly Used Cars Loan Purchase Down Amount Length Interest Monthly Total Total Cost # Price Payment Financed of Loan Rate Payment Interest (down (in to be payment months) Paid principal interest) F $10.000 $2.000 $8.000 60 9.15% $167 $1999 $11.999 to search 44 GD 1.1.2.1.3 1.4 1.56 13 TON 8 9 10 11 12 13 TOON 14 15 What is best about this loan - the monthly payment or the interest rate? Joe Friendly Used Cars Loan Purchase Down Amount Length Interest Monthly Total Total Cost Price Payment Financed of Loan Rate Payment Interest (down (in to be payment months) Pald principal Interest) $10,000 $2,000 $8,000 60 9.15% $167 $1999 $11,999 F 9. What is best about a loan - its interest rate or its monthly payment? Why? (1 mark) 10. Answer the following questions about all the loans: 1. Which loan has the lowest monthly payment? (1 mark) 2. Which loan has the highest monthly payment? (1 mark) 3. Which loan has the lowest interest rate? (1 mark) 4. Which loan has the highest interest rate? (1 mark) 5. What is the lowest total cost? (1 mark) 2002, San Diego Centers for Education & Technology Basic Banking: Unit 1, Lesson 4 O (hp Lom/document/d/1ZhOhcB7Asedmikalnom MIVB WmUM ocedit uTube Maps gh - Business Graded Unit: Finance Case Study and Questions insert Format Tools Add-ons Help Last edit was 1 hour ago Normal text Arial 11 BIU A GO Finance case study and Questions 6. What is the highest total cost? (1 mark) 7. How many years is: (4 marks) a. 36 months? b 48 months? c. 60 months? d. 72 months? 8. Which loans have lower interest rates - shorter loans or longer loans?(1 mark) 9. Which loans have lower monthly payments - shorter loans or longer loans? (1 mark) 10. Discuss which loan you think is best for Samuel and Miranda. Which one do you recommend? Explain your reasons for choosing this loan. (2 marks) O B