b) $5,428.83
c) $5,448.83
d) $5,418.83
e) $5,398.83
f) None of the above.
7. John got a part time weekend job at a local restaurant to save for a new car. He plans on depositing $160 per month for the next 3 years in a savings account with a rate of 6% per year compounded monthly. How much will he have saved toward his down payment at the end of the 3 year period?
a) $6,293.78
b) $6,303.78
c) $6,323.78
d) $6,253.78
e) $6,273.78
f) None of the above.
8. Fred purchased a new car. His monthly payments are $550 per month. He will be paying on his car for 5 years, and the loan costs 9% per year compounded monthly. What was the original cost of the car?
a) $26,493.36
b) $26,492.36
c) $26,494.36
d) $26,499.36
e) $26,495.36
f) None of the above.
9. Jackson deposits $220 each month into a savings account earning interest at the rate of 5% per year compounded monthly. How much will he have in this account at the end of 7 years?
a) $22,071.30
b) $22,075.30
c) $22,076.30
d) $22,074.30
e) $22,072.30
f) None of the above.
10. Esther pays $467 per month for 6 years for a car. She made a down payment of $3,700. If the loan costs 7.1% per year compounded monthly, what was the cash price of the car?
a) $31,014.63
b) $45,469.53
c) $23,614.63
d) $27,314.63
e) $38,069.53
f) None of the above.
11. You borrowed $11,000 from your bank to build a small cabin on your property. The bank will charge 6% per year compounded quarterly. You decide to payoff this loan in 2 years by making quarterly payments. How much are your quarterly payments?
a) $1,449.42
b) $1,469.42
c) $1,499.42
d) $1,479.42
e) $1,439.42
f) None of the above.
12. Your brother would like to have $27,000 in 2 years for the purchase of a new car. What monthly payment should he make into an account paying 6% per year compounded monthly to attain his goal?
a) $1,091.66