Answer the following questions showing all your work to reach each answer.
A. Which option will result in a lower monthly payment if they take the full term of the mortgage?
B. Which option will result in the most total interest if they take the full term of the mortgage?
Answer the questions showing all your work to reach each answer
2. They decide to shop for furnishings for the new house. They choose items that amount to $1,600.00. The store has 2 simple interest options for purchasing:
Option 1: 20% down payment and financing at 6.4% simple interest per year for 2 years.
Option 2: no down payment and financing at 6.5% simple interest for 3 years.
Answer each of the following questions separately, showing all your work to reach each answer.
A. Which option will result in smaller total finance charge?
B. Which option will result in the smaller monthly payment?
C. If they decide to defer any purchases and take a $1,600 bonus that Maria will be getting from work and invest it at 2.5% per year simple interest, how long will it need to be invested to earn $250 interest
D. If they decide to defer any purchases and invest the $1600.00 bonus at 1.5% interest compounded every month, how much interest will they earn in 3 years?
3. Maria and John have decided that once they live in a house, they want to have a pet. They go to an animal shelter and find several pets that they would love to take home. There are 8 Siamese cats, 12 common cats, 6 German Shepherds, 5 Labrador Retrievers, and 11 mixed-breed dogs. Since they can’t decide, they place all the adoption cards in a container and draw one.