-Kratos has $1,500 that he will use as a down payment on a car. Assuming that he can afford a payment of $225per month, how much can Kratos spend on a car(that is, what is the total cost of the car that Kratos can purchase)if the interest rate is 4.75% and if he will finance his purchase with a 6year, monthly payment loan?
-Suppose you deposit $5,000 into an account earning 4 percent interest, compounded monthly. How many years (rounded to one decimal place –for example, 32.1843 year = 32.2) will it take for your account to be worth $9,500?
-Suppose you deposit $5,000 into an account earning 4 percent interest, compounded monthly and you also make monthly contributions of $50 (first monthly contribution made one month after the initial deposit is made). How many years (rounded to one decimal place –for example, 32.1843 year = 32.2) will it take for the account to grow to $7,500 in this case?
-Assume that I am trying to borrow money from you to finance my business. Assume that I promise to repay you in three installments, one payment of$5,000 to be made exactly 2years from today, a second payment of $10,000to be made exactly 5years from today, and a final payment of $15,000 to be made 8years from today.If your opportunity cost of funds is 7.5%p.a., (that is, use an interest rate of 7.5% for this question), how much should be willing to lend me today?