Adam is interested in buying a car within the next two years but wants to be financially free first. Considering that the current market values show that he can possibly buy a Toyota Yaris for $100, 000. He would like to have a down-payment of approximately $60, 000 so he would just have to provide $40,000.1. a) He checks out 3 banks to set up an account with in order to save for the down-payment in 2 years. The table provided lists the compounding periods for the Certificates of deposit and the rates offered by the 3 Financial Institutions. How can he determine which one of the Certificates of deposit (CD) has the best return from the investment.b) In reference to your answer in 1. a), How much would he need to invest in the beginning in order to recieve $60,000 after 2 years. Bank Compounded Rate CITI 10.94 Monthly Chase 10.95 Continuous Wells fargo 10.96 Quarterly c) Using the information provided in the table below decide which bank would be best to take a loan. Discuss the decision making factors. Bank Compound Rate JD Smith 5% APR no down payment Monthly (84 months) Royal Bank 4.4% APR with down payment or 4.5% APR no down payment Monthly (84 months) Gillie & Co 6.25% Monthly (72 months) 2. Adam decides to borrow $40,000 that is needed to buy the car, given that he has to make 24 equal monthly payments at R% interest monthly on the unpaid balance. a) How much of each monthly payment goes towards interest and how much is used to lessen the balance that is unpaid? Create an amortization schedule showing this information and discuss the benefits of it.

Adam is interested in buying a car within the next two years but wants to be financially free first. Considering that the current market values show that he can possibly buy a Toyota Yaris for $100,...

Adam is interested in buying a car within the next two years but wants to be financially free first. Considering that the current market values show that he can possibly buy a Toyota Yaris for $100, 000. He would like to have a down-payment of approximately $60, 000 so he would just have to provide $40,000.

1. a) He checks out 3 banks to set up an account with in order to save for the down-payment in 2 years. The table provided lists the compounding periods for the Certificates of deposit and the rates offered by the 3 Financial Institutions. How can he determine which one of the Certificates of deposit (CD) has the best return from the investment.

b) In reference to your answer in 1. a), How much would he need to invest in the beginning in order to recieve $60,000 after 2 years.

Bank	Compounded	Rate
CITI	10.94	Monthly
Chase	10.95	Continuous
Wells fargo	10.96	Quarterly

c) Using the information provided in the table below decide which bank would be best to take a loan. Discuss the decision making factors.

Bank	Compound	Rate
JD Smith	5% APR no down payment	Monthly (84 months)
Royal Bank	4.4% APR with down payment or 4.5% APR no down payment	Monthly (84 months)
Gillie & Co	6.25%	Monthly (72 months)

2. Adam decides to borrow $40,000 that is needed to buy the car, given that he has to make 24 equal monthly payments at R% interest monthly on the unpaid balance.

a) How much of each monthly payment goes towards interest and how much is used to lessen the balance that is unpaid? Create an amortization schedule showing this information and discuss the benefits of it.

Jun 06, 2022

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Adam is interested in buying a car within the next two years but wants to be financially free first. Considering that the current market values show that he can possibly buy a Toyota Yaris for $100,...

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