Make a $5000 down payment and take advantage of the 1.9% finance rate that the dealer is offering and pay mont?

Question

1.) Kai is considering purchasing a starter home for $75 000 or renting the same house. He is looking at this for a five year term only. 
**Purchasing a home:
Monthly mortgage payment: $1 200
Down Payment $10 000 	
Renting a home:
Monthly Rent: $1 500
Damage Deposit: $1 000 **

Determine the total cost for Purchasing the home and renting the home (assuming he gets all of his damage deposit back) over the 5 year period. Use your calculations to determine which of the following statements is true.
A) Less expensive to purchase than to rent by $9 000.
B) Less expensive to purchase than to rent by $8000.
C) Less expensive to to purchase than to rent by $18 000.
D)Less expensive to to purchase than to rent by $19 000.


2.) Mike is planning to purchase a sofa and chair set for his new apartment.  He is considering the following two options.
Option One: "rent-to-own" with a down payment of $179.99 and 24 monthly payments of $58.50
Option Two: purchse the set outright for $1099.00 (including taxes)
The difference in total cost betwen the two options, to the nearest dollar, is
	
A)$193
B)$125
C)$485
D)$305

3.) Mike is planning on purchasing a new car.  He is considering the following two options.
Option One: Finance the car, with a down-payment of $2000 and 60 monthly payments of $439.(includes taxes)
Option Two: purchase the car outright for $26 797.86 (including taxes)
The difference in total cost between the two options, to the nearest dollar, is

A) $3542
B) $2458
C) $458
D) $1542

4.) Bill is planning on buying a new sports unitlity vehicle.  The cost of the vehicle is $58 888.30 (including taxes).   He has two options:
Option One:  Buy the car outright.
Option Two:  Make a $5000 down payment and take advantage of the 1.9% finance rate that the dealer is offering and pay monthly for the vehicle over a 5 year period.
The difference in total cost betwen the two options, to the nearest dollar, is

A) $2643
B)$2888
C) $2357
D) $7888

Anonymous · Accepted Answer

one q at a time please.

1. costs upon purchasing the house

down payment = $10000

installment payments = 60*1200 

                               =  $ 72000

total sum = $ 72000+$ 10000 = $ 82000.00

-------------------------------------------------------------

if he rents the house instead

expense are

$ 1500 * 60 = $ 

hence,

purchasing costs are $ 720000.00

renting costs are  $ 90000.00

purchasing is cheaper by $ 90000 - $ 72000 = $ 18000

option C

Nicole · Answer

You must have horrible credit. I've seen people with no real jobs qualify for HD loans. Anyway, that's part of the reason the average age of a harley owner is 46. we save up our money and pay cash. When you grow up and get a job, you'll see how it works. Oh and by the way, since you closed out your other post concerning Harley sales??? The figures you were quoting were profit losses at 91 percent, not sales. Sales for the second quarter were down something like 35 percent over the previous quarter. Their profit margin was still close to 1.12 billion. There are many things that can affect profits and few have to do with total sales as you were trying to intimate. HD is in no more trouble than the rest of the auto/motorcycle industry.

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Make a $5000 down payment and take advantage of the 1.9% finance rate that the dealer is offering and pay mont?

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