1. You are out shopping for a new car. You have found a Toyota Sienna priced at 34,400. The dealer has told you that if you can come up with a down payment of 3,300, he would be willing to finance the balance at an EAR of 5.65%. for 4 years. You come back home and after doing the math you find that the monthly payment is beyond your means. At this time, you can only afford a monthly payment of $661.01. In order to accomplish that, the dealer will have to offer you a substantially lower APR. So the next day, you tell the dealer that since the demand for Toyotas are substantially lower at this time due to quality control issues, you can only go ahead if the dealer is willing to lower the APR so that the monthly payment is $661.01. What is the monthly payment that is beyond your means at this time? What should be the APR so that the monthly payment is $661.01?
A. $1,892.45 AND 1.99%
B. $786.44 AND 5.51%
C. $723.42 AND 0.99%
D. $989.71 AND 3.99%
2. A 20-years annuity-immediate has annual payments . The first payment is 100 and subsequent payments are increased by 100 until they reach 1000. The remaining payment stay at 1000. the annual effective intersst rate 7.5% . What is the coast of this annuity?
3. How long will it take to pay off a loan of $47,000 at an annual rate of 8% compounded monthly if you make monthly payments of $650? Use five decimals places for the monthly percentage rate in your calculations?
The number of years it takes to pay off the loan is ____ years. (Round to one decimal place)