- If we can afford to save $100 per month for a $50,000 car, in an
account compounding monthly at 8%, then how long will it take
to save up? Setup the formula for the problem but do not solve.
If I told you that the answer was approximately 18.38
years would that make sense? Why?
- What will our monthly payment be
if we take out a car loan at 8% compounded monthly for $50,000
for 18.38 years? What is the interest paid over the life of the loan?
- Use the Sept 2000 interest rate of 8.25% compounded monthly for the
105265 condo with a loan of 80%. What is the monthly payment? What is the
1st months interest? What is the total interest over the life of the loan?
Compare to the chart on the condo lab.
- Work on How Do You Know Exercise Set 1.2 #9, 14, 21, and 24
- Work on How Do You Know Exercise Set 1.3 # 8, 10