1) A loan of $8000 is to be repaid with monthly payments for three years at 12% interest compounded monthly. Calculate the monthly payment.
A) $211.37
B) $237.00
C) $265.71
D) $264.38
E) none of these
2) On December 31, 1995, a house is purchased with the buyer taking out a 30-year $90,000 mortgage at 9% interest compounded monthly. The mortgage payments are made at the end of each month. Calculate the amount of the monthly payment.
A) $724.16
B) $1356.37
C) $1365.69
D) $1355.91
E) none of these
3) Calculate the amount after five years if $2000 is deposited at 13% simple interest.
A) $3300.00
B) $3791.68
C) $3684.87
D) $3754.27
E) none of these
Solve each problem. Express percents as decimals. Round dollar amounts to the nearest cent.
4) What is the compound amount after three years of $5000 deposited at 8% interest compounded quarterly?
5) In order to have $10,000 in five years, how much would a person have to invest if the money will earn 12% interest compounded semiannually?
6) Specify i, n, R, and F for the following annuity. At the end of each quarter, $100 is deposited into an account paying 4% interest compounded quarterly. The balance after five years will be $2201.90.
7) What is the present value of an annuity of $150 per month for three years if the interest is 12% compounded monthly?
8) How much money must you deposit now at 6% interest compounded monthly in order to be able to withdraw $200 at the end of each month for 10 years?