1. 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?
2. 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?
3. 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.
4. Work on How Do You Know Exercise Set 1.2 #9, 14, 21, and 24
5. Work on How Do You Know Exercise Set 1.3 # 8, 10