alculate the amount of simple interest earned. $1,000 at 13% for 20 years $ 2600 2. –/1.05 points
esolutions
calculate_the_amount_q.pdf
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Current Score : 1.6 / 20 Due : Sunday, November 17 2013 11:59 PM EST
1. 1.05/1.05 points | Previous Answers SmithNM12 11.1.019.
Calculate the amount of simple interest earned.
$1,000 at 13% for 20 years
$ 2600
2. –/1.05 points SmithNM12 11.1.022.C MI.
Find the future value, using the future value formula and a calculator. (Round your answer to the
nearest cent.)
$823 at 5.5% compounded quarterly for 6 years
$
3. –/1.05 points SmithNM12 11.1.030.
Find the present value, using the present value formula and a calculator. (Round your answer to
the nearest cent.)
Achieve $225,500 at 8.25% compounded continuously for 8 years, 145 days.
$
Homework 6: Financial Management (Chapter 11) (Homework)
PRAVEEN MISHRA
MAT104, section 160VA001-1138-001, Fall 2013 Instructor: IMED C HOUIKHA
WebAssign
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4. 0/1.05 points | Previous Answers SmithNM12 11.1.032.
If $38,500 is invested at 6.7% for 30 years, find the future value if the interest is compounded the
following ways. (Round your answers to the nearest cent.)
(a) annually
$
(b) semiannually
$
(c) quarterly
$
(d) monthly
$ Your answer cannot be understood or graded. More Information
(e) daily
$
(f) every minute (N = 525,600)
$
(g) continuously
$
(h) simple (not compounded)
$
5. –/1.05 points SmithNM12 11.1.046.
Suppose that an insurance agent offers you a policy that will provide you with a yearly income of
$40,000 in 30 years. What is the comparable salary today, assuming an inflation rate of 5%
compounded annually? (Round your answer to the nearest cent.)
$
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6. –/1.05 points SmithNM12 11.2.025.
Convert the credit card rate to the APR.
Oregon, per month
%
7. –/1.05 points SmithNM12 11.2.031.
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days
for a payment to be received and recorded, and that the month is 30 days long. (Round your
answers to the nearest cent.)
$200 balance, 16%, $50 payment
(a) previous balance method
$
(b) adjusted balance method
$
(c) average daily balance method
$
1 % 3
4
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8. –/1.05 points SmithNM12 11.2.045.
Assume the car can be purchased for 0% down for 60 months (in lieu of rebate).
A car with a sticker price of $42,150 with factory and dealer rebates of $5,100
(a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to
the nearest cent.)
$
(b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round
your answer to the nearest cent.)
$
(c) Use the APR approximation formula to find the APR for part (b). (Round your answer to
one decimal place.)
%
(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.
0% APR
2.5% add-on rate
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9. –/1.05 points SmithNM12 11.2.048.
For the car loan described, give the following information.
A newspaper advertisement offers a $4,500 used car for nothing down and 36 easy
monthly payments of $147.62.
(a) amount to be paid
$
(b) amount of interest
$
(c) interest rate (Round your answer to two decimal places.)
%
(d) APR (rounded to the nearest tenth percent)
%
10.–/1.05 points SmithNM12 11.2.059.
Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings
account is depleted, and they will need to borrow money in order to buy a new one. Sears offers
them an installment loan at 16% (add-on rate). If the refrigerator at Sears costs $1,538 plus 5%
sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years, what is the monthly
payment? (Round your answer to the nearest cent.)
$
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11.–/1.05 points SmithNM12 11.5.020.C MI.
Use a calculator to evaluate an ordinary annuity formula
for m, r, and t (respectively). Assume monthly payments. (Round your answer to the nearest
cent.)
$150; 5%; 35 yr
A = $
12.–/1.05 points SmithNM12 11.5.038.C MI.
Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your
answer to the nearest cent.)
$
Amount Needed
A
Frequency
n
Rate
r
Time
t
$50,000 semiannually 15% 10 yr
13.–/1.05 points SmithNM12 11.6.015.C MI.
Use a calculator to evaluate the amortization formula
for the values of the variables P, r, and t (respectively). Assume n = 12. (Round your answer to
the nearest cent.)
$150,000; 4%; 25 yr
$
A = m 1 + − 1
r
n
nt
r
n
m =
P
1 − 1 +
r
n
r
n
−nt
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14.–/1.05 points SmithNM12 11.6.032.
Find the monthly payment for the loan. (Round your answer to the nearest cent.)
$900 loan for 12 months at 14%
$
15.–/1.05 points SmithNM12 11.6.040.C MI.
Find the monthly payment for the loan. (Round your answer to the nearest cent.)
A $110,000 home bought with a 20% down payment and the balance financed for 30 years
at 8.5%
$
16.–/1.05 points SmithNM12 11.6.042.
Find the monthly payment for the loan. (Round your answer to the nearest cent.)
Finance $650,000 for a warehouse with a 9.50% 30-year loan
$
