FIN 1103-3 FIN1103-3 Individual Week 5

FIN 1103-3 FIN1103-3 Individual Week 5


  • $9.99

FIN 1103-3 Individual Week 5

1. Debbie Snyder has just graduated from college and needs to buy a car to commute to work. She estimates that she can afford to pay about $ 450 per month for a loan or lease and has about $ 2,000 in savings to use for a down payment. Develop a plan to guide her through her first car buying experience, including researching car type, deciding whether to buy a new or used car, negotiating the price and terms, and financing the transaction.

4. Using the maximum ratios for a conventional mortgage, how big a monthly payment could the Taylor family afford if their gross (before-tax) monthly income amounted to       $ 3,500?

6. Use Worksheet 5.2. Aurelia Montenegro is currently renting an apartment for $725 per month and paying $275 annually for renter’s insurance. She just found a small townhouse she can buy for $185,000. She has enough cash for a $10,000 down payment and $4,000 in closing costs. Aurelia estimated the following costs as a percentage of the home’s price: property taxes, 2.5 percent; homeowner’s insurance, 0.5 percent; and maintenance, 0.7 percent. She is in the 25 percent tax bracket. Using Worksheet 5.2, calculate the cost of each alternative and recommend the least costly option— rent or buy— for Aurelia.

We Also Recommend



Sold Out