1. Determine your monthly payment on a 20-year $130,000 mortgage loan at 6 7/8% interest.
a $998.16
b $990.79
c $998.55
d $933.93
2. You want to start a landscape business and estimate it will take $12,500 to get started. You currently have $1,500 and can deposit an additional $200 at the end of each month. If your savings plan will earn 4.5% compounded monthly, in how many months can you start your business?
a 23.80 months
b 48.85 months
c 4.47 months
d 13.22 months
3. You want to accumulate $32,000 in 15 years for your child’s education, and you can earn 5% compounded monthly. What amount must you deposit each month if the first of your deposits is made today?
a $253.05
b $252.00
c $119.22
d $119.72