# FIN 1103-3 FIN1103-3 Individual Week 5

soffix

• \$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 Â  Â  Â  \$ 3,500?

6. Use Worksheet 5.2. Aurelia Montenegro is currently renting an apartment for \$725 per month and paying \$275 annually for renterâ€™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 homeâ€™s price: property taxes, 2.5 percent; homeownerâ€™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 optionâ€” rent or buyâ€” for Aurelia.

Sale

Unavailable

Sold Out