wap 32 Name Date Making good financial decisions is sometimes more challenging than comparing prices Perhaps the 80 coffee maker seems unnecessary but if you consider that you spend 3 a day on Starbucks then this machine will quickly pay for itself When things get more expensive and loans are required then these decisions become a lot more important 220 In this assignment the individuals are on the verge of making a large purchase which will require a loan They are all asking themselves Should I buy Mary Task Must decide if a washer and dryer is worth it Help these six people make decisions on these important purchases Arnold ask Must decide if he will buy a new car Mary goes to the laundromat every week and it costs 5 She has found a combination washer dryer that she could purchase for 1 200 but she would need to take out a loan The local bank is offering her an 8 loan for the full amount Would be cheaper to borrow money on loan or continue going to the laundromat for the next five years Assume the washer and dryer will be financed for the five years using simple interest Which would cost more after 5 years the loan or paying for weekly laundry Should she buy it Arnold has paid off his car but it is beginning to run into problems He will consider buying a new car if the monthly payment is less than 200 He is looking at a 14 000 car with an interest rate of 5 simple interest for 3 years Should he buy it Hint An estimated monthly payment can be found with the formula Principal Total Interest Number of Months