You need to borrow $15,000 to buy a car, and you determine that you can afford monthly payments of $325. The bank offers three choices: a 3-yearloan at 7% APR, a 4-year loan at 7.5% APR, or a 5-year loan a 8% APR. Which loan best meets your needs? Show your work and explain your reasoning.

Answers

Answer 1
Answer:

The 4-year loan at 7.5% APR seems to be the best choice as it strikes a balance between a reasonable monthly payment and minimizing the total interest paid.

To determine which loan option best meets your needs, you should consider both the monthly payment amount and the total cost of the loan. Here's how you can calculate and compare the three options:

1. 3-year loan at 7% APR:

  - Monthly payment: $325

  - Total payments over the loan term: $325 * 12 months/year * 3 years = $11,700

  - Total interest paid: $11,700 - $15,000 = $3,300

2. 4-year loan at 7.5% APR:

  - Monthly payment: $325

  - Total payments over the loan term: $325 * 12 months/year * 4 years = $15,600

  - Total interest paid: $15,600 - $15,000 = $600

3. 5-year loan at 8% APR:

  - Monthly payment: $325

  - Total payments over the loan term: $325 * 12 months/year * 5 years = $19,500

  - Total interest paid: $19,500 - $15,000 = $4,500

Now, let's analyze the options:

- The 4-year loan at 7.5% APR has the highest monthly payment but the lowest total interest cost, making it the most cost-effective option. However, you should ensure that the higher monthly payment fits comfortably within your budget.

- The 3-year loan at 7% APR has a lower interest cost than the 5-year loan but a higher monthly payment. It's a good middle-ground choice if you can afford the monthly payments.

- The 5-year loan at 8% APR offers the lowest monthly payment but results in the highest total interest cost. It's the least cost-effective option, and you would end up paying significantly more over the loan term.

Ultimately, the 4-year loan at 7.5% APR seems to be the best choice as it strikes a balance between a reasonable monthly payment and minimizing the total interest paid. However, ensure that the monthly payment aligns with your financial situation before making a decision.

For more such questions on monthly payment:

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Answer 2
Answer:

Answer:

the 5yr/ $270mth

Step-by-step explanation:

$15k × 8% = $1200 interest

$15k + $1200 = $16,200.00

$16500 ÷ 60months (5years) = $270/mth pymt


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Zach's baseball team is raising money for a charity. Zach is tasked with raising at least $250. If represents the amount of money Zach raises, which inequality represents this situation?a. x>250

b. x<_250

c. x>_250

d. x<250

Answers

Answer: x ≥ 250

Step-by-step explanation:

Suppose the sequence StartSet a Subscript n Baseline EndSet is defined by the recurrence relation a Subscript n plus 1equalsnegative 2na Subscript n​, for nequals​1, ​2, 3,..., where a1equals5. Write out the first five terms of the sequence.

Answers

Answer:

-10, 40, -240, 1,920 and -19, 200

Step-by-step explanation:

Given the recurrence relation of the sequence defined as aₙ₊₁ = -2naₙ for n = 1, 2, 3... where a₁ = 5, to get the first five terms of the sequence, we will find the values for when n = 1 to n =5.

when n= 1;

aₙ₊₁ = -2naₙ

a₁₊₁ = -2(1)a₁

a₂ = -2(1)(5)

a₂ = -10

when n = 2;

a₂₊₁ = -2(2)a₂

a₃ = -2(2)(-10)

a₃ = 40

when n = 3;

a₃₊₁ = -2(3)a₃

a₄ = -2(3)(40)

a₄ = -240

when n= 4;

a₄₊₁ = -2(4)a₄

a₅ = -2(4)(-240)

a₅ = 1,920

when n = 5;

a₅₊₁ = -2(5)a₅

a₆ = -2(5)(1920)

a₆ = -19,200

Hence, the first five terms of the sequence is -10, 40, -240, 1,920 and -19, 200

Simplify.
28+3(5d-3)

Answers

Answer:

15d+19

Step-by-step explanation:

distribute 3(5d-3) first

= 15d-9

the expression is now 28+15d-9

combine 28 and -9

=19

bam u now have 15d+19

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Answers

Answer:

A≈201.06cm²

Step-by-step explanation:

Rewrite the radical as a rational exponent. (2 points) the fourth root of 7 to the fifth power

Answers

You answer to this is 7^5/4

Answer: The answer is

Step-by-step explanation: A: 7^5/4

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Answers

Answer:

there are 5280  feet in a mile

Step-by-step explanation:

Other Questions
Part A Each time you press F9 on your keyboard, you see an alternate life for Jacob, with his status for each age range shown as either alive or dead. If the dead were first to appear for the age range of 75 to 76, for example, this would mean that Jacob died between the ages of 75 and 76, or that he lived to be 75 years old. Press F9 on your keyboard five times and see how long Jacob lives in each of his alternate lives. How long did Jacob live each time? Part B The rest of the potential clients are similar to Jacob, but since they’ve already lived parts of their lives, their status will always be alive for the age ranges that they’ve already lived. For example, Carol is 44 years old, so no matter how many times you press F9 on your keyboard, Carol’s status will always be alive for all the age ranges up to 43–44. Starting with the age range of 44–45, however, there is the possibility that Carol’s status will be dead. Press F9 on your keyboard five more times and see how long Carol lives in each of her alternate lives. Remember that she will always live to be at least 44 years old, since she is already 44 years old. How long did Carol live each time? Part C Now you will find the percent survival of each of your eight clients to the end of his or her policy using the simulation in the spreadsheet. For each potential client, you will see whether he or she would be alive at the end of his or her policy. The cells in the spreadsheet that you should look at to determine this are highlighted in yellow. Next, go to the worksheet labeled Task 2b and record either alive or dead for the first trial. Once you do this, the All column will say yes if all the clients were alive at the end of their policies or no if all the clients were not alive at the end of their policies. Were all the clients alive at the end of their policies in the first trial? Part D Next, go back to the Task 2a worksheet, press F9, and repeat this process until you have recorded 20 trials in the Task 2b worksheet. In the Percent Survived row at the bottom of the table on the Task 2b worksheet, it will show the percentage of times each client survived to the end of his or her policy, and it will also show the percentage of times that all of the clients survived to the end of their respective policies. Check to see whether these percentages are in line with the probabilities that you calculated in questions 1 through 9 in Task 1. Now save your spreadsheet and submit it to your teacher using the drop box. Are your probabilities from the simulation close to the probabilities you originally calculated?