Question

1)

When you purchased your car, you took out a five-year annual-payment loan with an interest rate of

6.5%

per year. The annual payment on the car is

$4,500.

You have just made a payment and have now decided to pay off the loan by repaying the outstanding balance. What is the payoff amount for the following scenarios? a.

You

have owned the car for one year (so there are four years left on the loan)?

b. You have owned the car for four years (so there is one year left on the loan)?

a.

You

have owned the car for one year (so there are four years left on the loan)? The payoff if you have owned the car for one year (so there are four years left on the loan) is

$nothing.

(Round to the nearest cent.)

b. You have owned the car for four years (so there is one year left on the loan)?

The payoff if you have owned the car for four years (so there is one year left on the loan) is

2)

You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is

$3,120

and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly four years and eight months old. You have just made your monthly payment. The mortgage interest rate is

6.750%

(APR). How much do you owe on the mortgage today? (Note: Be careful not to round any intermediate steps less than six decimal places.)

The amount you owe today is?

(Round to the nearest dollar.)

Answer 1