f) None of the above.
5).
Stor-Away Co. needs to buy a new forklift.
The company decides to deposit $3,700 in an account
that earns 3% per year compounded semiannually.
How much will the investment be worth in 2 years?
b) $3,927.05
6).
John wishes to set up an account for his grandfather
so that he can have some extra money each month.
John wants his grandfather to be able to withdraw
$130 per month for the next 4 years.
How much must John invest today at 7% per year compounded monthly
so that his grandfather can withdraw $130 per month for the next 4 years?
a) $5,438.83
b) $5,428.83
c) $5,448.83
d) $5,418.83
e) $5,398.83
f) None of the above.
7).
John got a part time weekend job at a local restaurant to save for a new car.
He plans on depositing $160 per month for the next 3 years
in a savings account with a rate of 6% per year compounded monthly.
How much will he have saved toward his down payment at the end of the 3 year period?
a) $6,293.78
b) $6,303.78
c) $6,323.78
d) $6,253.78
e) $6,273.78
f) None of the above.
8).
Fred purchased a new car.
His monthly payments are $550 per month.
He will be paying on his car for 5 years,
and the loan costs 9% per year compounded monthly.
What was the original cost of the car?
a) $26,493.36
b) $26,492.36
c) $26,494.36
d) $26,499.36
e) $26,495.36
f) None of the above.
9). Jackson deposits $220 each month into a savings account earning interest at the rate of 5% per year compounded monthly. How much will he have in this account at the end of 7 years?
a) $22,071.30
b) $22,075.30
c) $22,076.30
d) $22,074.30
e) $22,072.30
f) None of the above.
10).
Esther pays $467 per month for 6 years for a car.
She made a down payment of $3,700.
If the loan costs 7.1% per year compounded monthly,
what was the cash price of the car?