Algebra Homework
ccrawford1979
Section5.2Homework.docx1. Mike’s Sporting Goods sells elliptical trainers under two payment plans: cash and installment. Under the installment plan, the customer pays $90/month over 5 years with interest changed on the balance at a rate of 19%/year compounded monthly. Find the cash price for an elliptical trainer if it is equivalent to the price paid by a customer using the installment plan. Round your answers to two decimal places.
|
|
a. |
$3,452.28 |
|
|
b. |
$3,469.47 |
|
|
c. |
$3,464.42 |
|
|
d. |
$3,492.47 |
|
|
e. |
$3,502.80 |
1 points
QUESTION 2
1. If Jackson deposited $400 at the end of each month in the saving account earing interest at the rate of 6%/year compounded monthly, how much will he have on deposite in his savings account at the end of 6 years, assuming that he makes no withdrawals during that period? Round your answers to two decimal places.
|
|
a. |
$34,463.31 |
|
|
b. |
$34,563.54 |
|
|
c. |
$34,490.17 |
|
|
d. |
$34,541.61 |
|
|
e. |
$34,538.54 |
1 points
QUESTION 3
1. Linda has joined a "Christmas Fund Club" at her bank. At the end of every month, December through October inclusive, she will make a deposit of $30 in her fund. If the money earns interest at the rate of 6%/year compounded monthly, how much will she have in her account on December 1 of the following year?
|
|
a. |
$340.07 |
|
|
b. |
$30.00 |
|
|
c. |
$338.37 |
|
|
d. |
$449.15 |
1 points
QUESTION 4
1. Find the present value of an ordinary annuity of $500 payments each made quarterly over 6 years and earning interest at 8% per year compounded quarterly.
|
|
a. |
$2,311.44 |
|
|
b. |
$24,968.07 |
|
|
c. |
$9,456.96 |
|
|
d. |
$5,264.38 |
1 points
QUESTION 5
1. Find the present value of an ordinary annuity of $1,400 payments each made semiannually over 8 years and earning interest at 12% per year compounded semi-annually.
|
|
a. |
$14,148.25 |
|
|
b. |
$6,954.70 |
|
|
c. |
$9,763.58 |
|
|
d. |
$3,365.99 |
1 points
QUESTION 6
1. The Johnsons have accumulated a nest egg of $25,000 that they intend to use as a down payment toward the purchase of a new house. Because their present gross income has placed them in a relatively high tax bracket, they have decided to invest a minimum of $1,000/month in monthly payments (to take advantage of their tax deductions) toward the purchase of their house. However, because of other financial obligations, their monthly payments should not exceed $1,800. If local mortgage rates are 9.5%/year compounded monthly for a conventional 40-year mortgage, what is the price range of houses that they should consider?
If the Johnsons decide to secure a 20-year mortgage instead of a 40-year mortgage, what is the price range of houses they should consider when the local mortgage rate for this type of loan is 9%?
|
|
a. |
The price of houses for 40-yr mortgage lies between $5,461,292 and $9,810,325; for 20-yr mortgage – between $692,887 and $1,227,196. |
|
|
b. |
The price of houses for 40-yr mortgage lies between $148,447 and $247,205; for 20-yr mortgage – between $136,145 and $225,061. |
|
|
c. |
The price of houses for 40-yr mortgage lies between $136,145 and $225,061; for 20-yr mortgage – between $148,447 and $247,205. |
1 points
QUESTION 7
1. As a fringe benefit for the past 8 years, Colin's employer has contributed $50 at the end of each month into an employee retirement account for Colin that pays interest at the rate of 8%/year compounded monthly. Colin has also contributed $2,000 at the end of each of the last 4 years into an IRA that pays interest at the rate of 10%/year compounded yearly. How much does Colin have in his retirement fund at this time?
|
|
a. |
$6,693.43 |
|
|
b. |
$9,282.00 |
|
|
c. |
$15,975.43 |
|
|
d. |
$9,813.83 |
1 points
QUESTION 8
1. Find the amount of an ordinary annuity for 6 years of semiannually payments of $1,400 that earn interest at 8%/year compounded semi-annually.
|
|
a. |
$2,241.45 |
|
|
b. |
$9,286.17 |
|
|
c. |
$26,567.98 |
|
|
d. |
$21,036.13 |
1 points
QUESTION 9
1. Robin, who is self-employed, contributes $5,500/year into a Keogh account. How much will he have in the account after 15 years if the account earns interest at the rate of 8.5%/year compounded yearly?
|
|
a. |
$219,983.36 |
|
|
b. |
$155,277.48 |
|
|
c. |
$18,698.59 |
|
|
d. |
$6,623.25 |
1 points
QUESTION 10
1. Pierce Publishing sells encyclopedias under two payment plans: cash or installment. Under the installment plan, the customer pays $23/month over 2 yr with interest charged on the balance at a rate of 15%/year compounded monthly. Find the cash price for a set of encyclopedias if it is equivalent to the price paid by a customer using the installment plan. Please round the answer to the nearest cent.
|
|
a. |
$564.26 |
|
|
b. |
$406.93 |
|
|
c. |
$474.36 |
|
|
d. |
$420.19 |
|
|
e. |
$332.81 |
