Answer: a. Reports indicate that students are particularly vulnerable to these tactics. If you fail to pay off the balance, you end up paying much more than the original purchase price for your items.

Explanation:

Even though financial advice is usually tailormade for the individual, a financial expert would most likely give this advice to a student because students are indeed vulnerable to such tactics.

They would be more prone to spend more in the store as a result of the credit card and this will lead to them being unable to pay off balances which will then lead to them paying much more than the original price they would have paid.

4 0

3 years ago

Ben and Carla Covington plan to buy a condominium. They will obtain a $225,000, 30-year mortgage at 7.5 percent. Their annual pr

lana66690 [7]

Answer:

<u>Monthly housing payment 2,033.22</u>

Explanation:

We need to calculate the monthly cuota of the mortgage

It will be the cuota of a 30 year annuity at 7.5 rate

$PV \div \frac{1-(1+r)^{-time} }{rate} = C$

We should convert the year in month and the rate in monthly, because the payment are monthly.

time= 30 year so 30 x 12 = 360 months

rate = 0.075 / 12 = 0.00625 monthly

Present Value = 225,000

$225,000 \div \frac{1-(1+0.00625)^{-360} }{0.00625} = C$

C = $1,573.23

Now we will calculate the propert taxes, insurance per month

2,050 / 12 = 170.83

530 / 12 = 44.16

1,573.23 + 170.83 + 44.16 + 245 = 2,033.22

7 0

3 years ago