?4:04classroom.google.com1. Maya would like to borrow $4500. Her bank offered her a two-year personal loan with monthly payments.The interest rate on the loan is 8% per year, compounded monthly. How much interest will Maya pay over thelife of the loan?a. $384.48c. $219.81d. $197.40b. $778.002. An amount of $1500 is deposited semi-annually for two years into a fund that pays 10.5% per year,compounded semi-annually. Use a TVM Solver to determine the future value of this annuity.a. $6079.21c. $3078.75d. $6489.25b. $5871.013. Determine the monthly deposit needed to save $10 000 in three years if interest is earned at 3.5% per year,compounded monthly.a. $263.85c. $250.13d. $276.97b. $293.024. Olivia invested $2000 at the end of every year into an RRSP fund that pays 8% per year, compoundedannually. Calculate the value of Olivia's investment ten years after she started investing in the fund.$24 012.21a.b. $28 973.12c. $20 610.79d. $13 420.165. Determine the monthly payment on $7500 borrowed at 9.6% per year, compounded monthly for one year andfor five years. What is the difference between the two monthly payments?a. approximately $100c. approximately $500d. approximately $200b. approximately $4006. Muhammad's bank offers personal loans for one to five years at 7.5% per year, compounded monthly.Calculate the total interest paid on a $18 000 loan from this bank using monthly payments of $400. Roundyour answer to the nearest ten dollars.a. $1350.00b. $4600c. $2460d. $32001A°°&7. Jessie is purchasing some new appliances. The after-tax cost is $6680. The interest rate on a personal loanfrom her bank is 6.9% per year, compounded monthly. Determine the number of months it will take Jessie torepay the loan if she can afford monthly payments of $300.a.25 monthsb. 27 monthsC. 24 monthsd. 21 months8. Calculate the total amount paid over the term of a five-year fixed rate mortgage of $260 000 amortized over25 years at an annual interest rate of 6.49%.a.$105 235.20C. $55 375.20d. $106 072.20b. $104 398.209. Erik purchased a laptop. Part of amortization table for Erik's one-year personal loan is shown.Principal Paid ($)Interest Paid ($)206.9121.67208.6419.94210.3818.20212.1316.45213.9014.68215.6812.90217.4811.10219.299.29221.127.46222.965.62224.823.76226.691.89Calculate the total amount needed to repay the loan.a. $142.98c. $2831.52d. $2600.00b. $2742.9610. Sara purchased a three-bedroom, two-storey house for $209 000 with a 10% down payment. The mortgage is7.25% per year, amortized over 20 years. Assume the interest rate remains constant. How much will Sara endup paying before the house is truly hers?a. $356 808.00C. $203 252.50d. $353 882.40b. $201 737.2511. Curtis bought a condominium for $319 000 and made a down payment of $64 000. The annual interest ratefor a five-year fixed rate mortgage is 5.49%. Determine the monthly payment for a 25-year amortizationperiod.Page2/ 3$7082 22C.d.+$896.67

Hi! thanks for the question but as per the guidelines, we answer only one question at one time.…

Maya would like to borrow $4500. Her bank offered her a two-year personal loan with monthly payments. The interest rate on the loan is 8% per year, compounded monthly. How much interest will Maya pay over the life of the loan? a. $384.48 c. $219.81 d. $197.40 b. $778.00

Maya would like to borrow $4500. Her bank offered her a two-year personal loan with monthly payments. The interest rate on the loan is 8% per year, compounded monthly. How much interest will Maya pay over the life of the loan? a. $384.48 c. $219.81 d. $197.40 b. $778.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

?
4:04
classroom.google.com
1. Maya would like to borrow $4500. Her bank offered her a two-year personal loan with monthly payments.
The interest rate on the loan is 8% per year, compounded monthly. How much interest will Maya pay over the
life of the loan?
a. $384.48
c. $219.81
d. $197.40
b. $778.00
2. An amount of $1500 is deposited semi-annually for two years into a fund that pays 10.5% per year,
compounded semi-annually. Use a TVM Solver to determine the future value of this annuity.
a. $6079.21
c. $3078.75
d. $6489.25
b. $5871.01
3. Determine the monthly deposit needed to save $10 000 in three years if interest is earned at 3.5% per year,
compounded monthly.
a. $263.85
c. $250.13
d. $276.97
b. $293.02
4. Olivia invested $2000 at the end of every year into an RRSP fund that pays 8% per year, compounded
annually. Calculate the value of Olivia's investment ten years after she started investing in the fund.
$24 012.21
a.
b. $28 973.12
c. $20 610.79
d. $13 420.16
5. Determine the monthly payment on $7500 borrowed at 9.6% per year, compounded monthly for one year and
for five years. What is the difference between the two monthly payments?
a. approximately $100
c. approximately $500
d. approximately $200
b. approximately $400
6. Muhammad's bank offers personal loans for one to five years at 7.5% per year, compounded monthly.
Calculate the total interest paid on a $18 000 loan from this bank using monthly payments of $400. Round
your answer to the nearest ten dollars.
a. $1350.00
b. $4600
c. $2460
d. $3200
1
A
°°
&
7. Jessie is purchasing some new appliances. The after-tax cost is $6680. The interest rate on a personal loan
from her bank is 6.9% per year, compounded monthly. Determine the number of months it will take Jessie to
repay the loan if she can afford monthly payments of $300.
a.
25 months
b. 27 months
C. 24 months
d. 21 months
8. Calculate the total amount paid over the term of a five-year fixed rate mortgage of $260 000 amortized over
25 years at an annual interest rate of 6.49%.
a.
$105 235.20
C. $55 375.20
d. $106 072.20
b. $104 398.20
9. Erik purchased a laptop. Part of amortization table for Erik's one-year personal loan is shown.
Principal Paid ($)
Interest Paid ($)
206.91
21.67
208.64
19.94
210.38
18.20
212.13
16.45
213.90
14.68
215.68
12.90
217.48
11.10
219.29
9.29
221.12
7.46
222.96
5.62
224.82
3.76
226.69
1.89
Calculate the total amount needed to repay the loan.
a. $142.98
c. $2831.52
d. $2600.00
b. $2742.96
10. Sara purchased a three-bedroom, two-storey house for $209 000 with a 10% down payment. The mortgage is
7.25% per year, amortized over 20 years. Assume the interest rate remains constant. How much will Sara end
up paying before the house is truly hers?
a. $356 808.00
C. $203 252.50
d. $353 882.40
b. $201 737.25
11. Curtis bought a condominium for $319 000 and made a down payment of $64 000. The annual interest rate
for a five-year fixed rate mortgage is 5.49%. Determine the monthly payment for a 25-year amortization
period.
Page
2/ 3
$7082 22
C.
d.
+
$896.67

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