Complete the attached worksheet. Please show all work
1. What would your car payment be if you financed a car for $18,450 over 3 years at an interest rate of 5%? How would that payment change if you financed it over 5 years at a rate of 4%? Which is the better deal? Defend your answer.
2. MarV, Inc. is considering adding a new wing to their Assisted Living Facility. One option is to borrow the money on a 15-year mortgage at 7.5% APR. The total cost of the expansion is expected to be $3.3 million. What would their monthly payment on this mortgage be? What if they made annual payments instead, but had to pay 8.25%? Show the difference in payments and the difference in total costs. Suggest reasons for and against each alternative.