Devika is considering the

Devika is considering the

Devika is considering the purchase of a car. After making the down payment, she will finance $15,500. Devika is offered two maturities. On a four-year loan, Devika will pay $371.17 per month. On a five-year loan, Devika’s monthly payments will be $306.99. If Devika had been able to afford the four-year loan, how much interest would she have saved compared to the five-year loan?Finn and Inga just borrowed $40,000 on a home equity line of credit. The interest rate for the loan is 5.75 percent for the entire year, and they took out the loan on May 1. Finn and Inga are in the 25 percent tax bracket. What will be their tax savings for the first year ending December 31?Noel has a 15 percent marginal tax rate. If he pays $2,600 in interest on a home equity loan in the first year, what will his tax savings be?

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