Maribel Salazar has a stock broker account at Diversified Investors Group on which she earns 4.5%...

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Finance

Maribel Salazar has a stock broker account at DiversifiedInvestors Group on which she earns 4.5% interest annually. She buysa car with a loan. The interest rate on the loan is 16.5%, but shedoesn't have to make any payments during the first year. Then shewill make monthly payments until the loan is paid off. Today,Maribel has: a stock broker account with $11,000, which earns 4.5%interest annually $8000 in car loan debt, with no payments thefirst year, but with the loan amount increasing by 16.5% at the endof the first year Today, the combined ("net") value of these twoaccounts is $3000, which is the difference between the value of thestock broker account and the car loan debt (= $11,000 - $8000).
Question 1: According to the terms of her loan, Maribel makes nopayments on her car loan for the first year. She also makes nodeposits or withdrawals from her stock broker account. At the endof the year, what will be the net value of the two accounts: $__
Question 2: If, instead of getting a loan, Maribel bought thecar by using money from her stock broker account at the beginningof this year, what would the net value of the two accounts be atthe end of the year: $

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Answer 1 At the start of the year today Car loan debt 8000 and rate of interest on it 165 monthly payments after 1 year Stock broker account balance 11000 and it earns 45 interest annually Maribel See Answer

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Maribel Salazar has a stock broker account at DiversifiedInvestors Group on which she earns 4.5% interest annually. She buysa car with a loan. The interest rate on the loan is 16.5%, but shedoesn't have to make any payments during the first year. Then shewill make monthly payments until the loan is paid off. Today,Maribel has: a stock broker account with $11,000, which earns 4.5%interest annually $8000 in car loan debt, with no payments thefirst year, but with the loan amount increasing by 16.5% at the endof the first year Today, the combined ("net") value of these twoaccounts is $3000, which is the difference between the value of thestock broker account and the car loan debt (= $11,000 - $8000).Question 1: According to the terms of her loan, Maribel makes nopayments on her car loan for the first year. She also makes nodeposits or withdrawals from her stock broker account. At the endof the year, what will be the net value of the two accounts: $__________Question 2: If, instead of getting a loan, Maribel bought thecar by using money from her stock broker account at the beginningof this year, what would the net value of the two accounts be atthe end of the year: $________