# Quantitative Assignment 3 Solution

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**Quantitative Assignment 3 Solution**

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**Quantitative Assignment 3**

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The case is designed to determine and evaluate the payment amount of a car

loan and a mortgage, based on your income. If you prefer, you may assume that

your household income is $48,000 per year or $4,000 per month. Based on your

income, you may spend 28 percent of your monthly income on housing and 10

percent on a car loan. You are to put a 3 percent down payment on the house and

a 10 percent down payment on the car. These will make the loan to value of your

loans to less than one: 97 percent on the house and 90 percent on the car.

- Determine the car payment and mortgage payment with the following

conditions: your monthly household income, 10 percent for the car payment, and

28 percent for the mortgage payment. Also, assume a 10 percent down payment on

the car and a 3 percent down payment on the house. - Create an amortization schedule, and graph the components over time:

interest, principal, and balance. - Discuss the distributions of principal, interest, and the balance over the

life of the loan.

- 10 years ago

**Quantitative Assignment 3 Solution**

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