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Loans Day 2 Practice

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Last updated over 1 year ago
12 questions
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Question 1
1.

Cosmo and Wanda decide to buy a house.
Cosmo due to a fair credit score is offered an interest rate of 4.11%.
They plan to take out a $400,000, 30-year loan to buy a house in Milton.

How much money will Cosmos monthly payment be?

Question 2
2.

How much money will Cosmo ultimetly pay back on his loan?

Question 3
3.

Wanda due to an excellent credit score is offered an interest rate of 2.52%.
They plan to take out a $400,000, 30-year loan to buy a house in Milton.

How much money will Wandas monthly payment be?

Question 4
4.

How much money will Wandas end up paying back on her loan?

Question 5
5.

How much money will they save by having Wanda take out a loan rather than Cosmo?

Part 2: The following prompts will help you compare the money paid back on a loan depending on the length of a loan rather than one's credit score
Question 6
6.

Cosmo and Wanda decide to buy a house.
Cosmo due to a fair credit score is offered an interest rate of 4.11%.
They plan to take out a $400,000, 15-year loan to buy a house in Milton.
How much money will Cosmos monthly payment be?

Question 7
7.

How much money will Cosmo ultimetly pay back on his loan?

Question 8
8.

How much will he save by taking a 15 year loan rather than a 30 year loan? (HINT use your answer from #2)

Question 9
9.

Wanda due to an excellent credit score is offered an interest rate of 2.52%.
They plan to take out a $400,000, 15-year loan to buy a house in Milton.
How much money will Wandas monthly payment be?

Question 10
10.

How much money will Wanda ultimetly pay back on this 15 year loan?

Question 11
11.

How much will she save by taking a 15 year loan rather than a 30 year loan? (HINT use your answer from #4)

Question 12
12.

Why might someone want to take out a 30 year loan rather than a 15 year loan? Use vocabulary such as monthly payment in your answer