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Interest and Loan
MM255 UNIT 4 ASSIGNMENT
The price of the used car is $18,700 and the down payment amount is $2,350. This implies that the amount to be financed is $16,350, that is the price of the car less the down payment. The car is intended to be financed over a period of 36 months and the monthly instalment is $516.95 for every month. Therefore, the total instalment amounts is $18,610.20, which is obtained by (516.95 × 36). The total amount financed is the sales tax together with the instalment amounts. The sales tax is 7 percent of the price of the vehicle, which is $1,309. Therefore, the total financing amount is $19,919.20. The financing charges to be paid over the life of the loan is $3,569.20.
The main advantage of paying cash is the evasion of paying financing charges. Imperatively, when a person pays for an item, in this case a car, the only amount paid is the price of the car together with any related fees. On the other hand, financing the vehicle includes the payment of the financing charges. However, the main advantage to this approach is that a person is able to obtain the vehicle if he or she lacks finances at the moment. This can be done in monthly instalments until the total amount is fully repaid. In addition, by financing a vehicle a person is...
Moreover, the aspect of low interest rates will have the advantages of facing cheaper borrowing costs.
Financial lenders make use of an individual’s credit score to measure his or her financial accountability, consistency, and past. There are numerous advantages to having good credit as compared to bad credit when qualifying for a loan. To begin with, a good credit score enables an individual to be completely updates on his or her credit reports and also makes the person become qualified to obtain loans straightforwardly devoid of any difficulties. In addition, the credit score facilitates a financial institution or lender in ascertaining the credit limit that can be sanctioned and the interest rate that can be set. Therefore, it is beneficial in having a good credit score in the long-term period, especially when one is in dire need of finances. When a person has a high credit score, then he or she may qualify for lower interest rates. In the contemporary, employers have begun screening the credit scores of prospective personnel in order to perceive whether they have good or poor credit history. This is for the reason that it is deemed that individuals who pay their debts in a timely manner…
NPV This becomes more complicated when trying to determine the changes that would occur to the net present value of today's dollars, especially given the uncertainties involved with changes in the interest rate. On the one hand, the value of future dollars (i.e. today's dollars saved) is eroded by inflation, so a lower interest rate is detrimental to NPV; on the other hand, higher interest rates mean more lucrative lending and
interest and compound interest? Why is knowing the difference important? What is the formula for determining the future value of an amount? Why is a dollar today worth more than a dollar received in the future? First Student Response: Interest in financial terms is when your initial investment yields benefits. You invest an amount and a percentage of that basic investment turns into financial surplus. You gain funds through your investment.
Car Loan The first step in analyzing the car payment plan is to determine how much of the car is covered in the car loan. This means taking the price of the car, then adding the sales tax. This is the total cost of the car net of tax. Then, the downpayment is deducted. The downpayment is the upfront payment, and will not be counted in the car loan. Used Car Price $ 21,000 $
Improving the Administration and Collection Process for Government-Sponsored Student Loans Introduction Today, tens of thousands of young people are mortgaging part of their future with student loans in order to obtain a higher education. In some cases, these students do not receive the full disclosure concerning repayment terms, creating a long-term hardship. To determine the facts, this paper provides an overview of government student loans and how the different actors on the
The choice to borrow money is never an easy one. Kyle needs to consider the loan as an investment in himself. A person like Kyle, who has a clear plan about his future and how he intends to build a career, has solid chances of being able to pay off the loan. It is people who are afraid to take financial risks that end up missing out on opportunities, neither
Disrupting America's economic system is a fundamental objective of terrorists Even as the world continues to struggle with the terrible shock from the September 11 attacks in New York and Washington, one principle lesson has already become clear: disrupting our economic system is a fundamental objective of terrorists. Prior to September 11, our economic environment was certainly not immune to terror, in comparison to many other nations; we lived relatively terror-free. Now,