Chapter 7 exercise | Financial markets homework help

6.Kim would like to purchase a new vehicle. Currently, she pays rent of $600 a month, credit card charges of $120 a month, and a student loan payment of $230 a month. Her gross monthly income is $4,000. Assume she wants to finance the vehicle for 3 years at 4 percent interest. What is the most she can afford as a car loan payment? Apply the standard 28/36 rule.

[removed]

 

 

7.You should expect a new vehicle to lose how much of its value within the first three years?

[removed]

[removed]

35 – 40%

20 – 25%

[removed]

25 – 30%

[removed]

15 – 20%

[removed]

10 – 15%

New vehicles generally depreciate 35% to 40% within the first three years.

 

 

 

 

 

 

 

 

8.Which of these statements is correct?

[removed]

[removed]

Auto leases tend to be better than purchases for individuals who drive more miles per year than the average person.

 

[removed]

 

Lease payments tend to be lower than auto loan payments with the same duration.

[removed]

Loan rates are generally lower for a used vehicle as compared to a new vehicle.

[removed]

Individuals who lease vehicles tend to keep them longer than individuals who purchase vehicles.

 

You can usually terminate a vehicle lease early without incurring any penalty.

 

 

 

 

 

Lease payments tend to be lower than purchase payments because you are only paying for the depreciation during the lease period.

 

9.Which one of the following is a disadvantage of renting versus buying a house?

[removed]

[removed]

increased free time

[removed]

lower initial costs

 

[removed]

potential annual payment increases

[removed]

unexpected repair costs

capital gain if property values rise

 

 

10.Luis purchased a home costing $350,000 three years ago. He paid 20 percent down in cash and borrowed the remainder. Since that time, home values in his neighborhood have declined by 10 percent. Over the past three years, Luis has paid $4,900 on the principal balance of his mortgage. How much equity does he currently have in his home? Has his equity increased or decreased since he purchased the home?

[removed]

 

 

11.Private mortgage insurance is generally required if your down payment on a house is less than what percentage of the purchase price?

 

 

 

12.Theresa is concerned about lowering her monthly costs. Which of the following should she do when considering a home purchase to help address her concern regarding costs?

[removed]

[removed]

avoid homes in high-risk insurance areas

[removed]

look for a low-maintenance, small yard

[removed]

locate a home close to her place of employment

[removed]

compare property taxes from one area to another

 

13. An adjustable-rate mortgage has a 3-year adjustment period, an introductory rate of 5%, an adjustable rate equal to the LIBOR plus 4%, an adjustment period cap of 3%, a lifetime rate cap of 10%, and a floor of 4%. Assume this is the end of year 3 and the LIBOR is currently 5%. What interest rate will be charged in year 4?

 

 

14. Which one of the following fees that must be paid at closing, is stated correctly?

 

 

15. Home equity lines of credit:

[removed]

[removed]

are fixed-rate, fixed-term loans.

[removed]

charge interest that is non-deductible for tax purposes.

[removed]

generally charge higher rates than typical credit cards.

are adjustable-rate loans.

are unsecured debts.

 

 

 

 

16.You had a $2,300 balance last month after your payment on your credit card. You charged one pair of shoes on the 10th for $230. Your card has a minimum finance charge fee of $5 per month and an APR of 12%. What is your total balance due this period if the card’s fees are calculated via the adjusted balance method?

 

 

17.You have a credit card balance of $44. You have made no charges this past month. Your card has a minimum finance charge fee of $5 per month and an APR of 9%. What is your total balance due this period if the card’s fees are calculated via the average daily balance method? (Do not round intermediate calculations.)

 

 

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Paper Helper has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!

Essays

Essay Writing Services

At Paper Helper, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.

Admissions

Admission Papers

You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!

Editing

Editing and Proofreading

Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.

Coursework

Technical papers

We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.

Coursework

College Essay Writing

If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!

Coursework

Quality Assignment/Homework Help

We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.

togel macau togel terbesar bocoran admin jarwo data macau