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
b) $1,061.66
c) $1,081.66
d) $1,071.66
e) $1,031.66
f) None of the above.
13).
A school realizes that they need a new copy machine for their main office.
The copy machine costs $5,500.
After speaking with the financial advisor,
they decide to pay 20% of the cost of the machine in cash
and finance the rest through their credit union.
How much is their monthly payment if the credit union will charge
4% per year compounded monthly for 3 years?
a) $37.77
b) $27.77
c) $131.02
d) $109.91
e) $129.91
f) None of the above.
14).
The Flores Family loves to go sailing on the weekends.
Mr. Flores has decided to purchase a more spacious sailboat.
The sailboat he is interested in buying in 4 years will cost him $25,000.
An account at Invest Well Bank earns 2% per year compounded monthly.
How much should Mr. Flores deposit in this account
at the beginning of each month to be able to pay cash for the sailboat in 4 years?
a) $467.33
b) $534.09
c) $500.71
d) $607.48
e) $510.71
f) None of the above.