1. You are planning to purchase a new car explain whether it is to your advantage to lease or buy your new car, and why. What did you have to consider about your personal circumstances before making this decision? What are the potential drawbacks of your decision?
2. Determine how long you could live on $2,000,000 drawing out $90,000 at the end of each year and the principal is expected to earn 5% compounded annually.
3. Suppose you have a $2,500 balance on your credit card. The interest rate is 15% and the monthly payment is $200. What is the total interest cost to borrow?