rt 1 American General offers a 8-year annuity with a guaranteed rate of 5.71% compounded annually. How much should you pay for one of these annuities if you want to receive payments of $1000 annually over the 8 year period? E-Loan, an online lending service, recently offered 48-month auto loans at 3.9% compounded monthly to applicants with good credit ratings. If you have a good credit rating and can afford monthly payments of $355, how much can you borrow from E-Loan? What is the total interest you will pay for this loan? The annual interest rate on a credit card is 13.99%. If a payment of $200.00 is made each month, how many months will it take to pay off an unpaid balance of $2,506.38? Assume that no new purchases are made with the credit card. It will take enter your response here months to pay off the unpaid balance. The annual interest rate on a credit card is 15.99%. If the minimum payment of $40 is made each month, how many months will it take to pay off an unpaid balance of $889.76? Assume that no new purchases are made with the credit card. It will take enter your response here months to pay off the unpaid balance. (Do not round until the final answer. Then round up to the nearest integer as needed.) The ad for a 4-door sedan claims that a monthly payment of $299 constitutes 0% financing. Explain why that is false. Find the annual interest rate compounded monthly that is actually being charged for financing $20,495 with 84
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Part 1
American General offers a
8-year
5.71%
compounded annually. How much should you pay for one of these
$1000
annually over the
8
year period?
E-Loan, an online lending service, recently offered
48-month
auto loans at
3.9%
compounded monthly to applicants with good credit ratings. If you have a good credit rating and can afford monthly payments of
$355,
how much can you borrow from E-Loan? What is the total interest you will pay for this loan?
The annual interest rate on a credit card is
13.99%.
If a payment of
$200.00
is made each month, how many months will it take to pay off an unpaid balance of
$2,506.38?
Assume that no new purchases are made with the credit card.
It will take
enter your response here
months to pay off the unpaid balance.
The annual interest rate on a credit card is
15.99%.
If the minimum payment of
$40
is made each month, how many months will it take to pay off an unpaid balance of
$889.76?
Assume that no new purchases are made with the credit card.
It will take
enter your response here
months to pay off the unpaid balance.
(Do not round until the final answer. Then round up to the nearest integer as needed.)
| The ad for a 4-door sedan claims that a monthly payment of
$299 constitutes 0% financing. Explain why that is false. Find the annual interest rate compounded monthly that is actually being charged for financing$20,495 with84 monthly payments of$299.
The advertisement is false, because for 0% financing, the monthly payments should be $enter your response here, not$299. |
NEW 4-DOOR SEDAN! Zero down - 0% financing $299 per month*Buy for$20,495. *4-door sedan, 0% down, 0% for84 months |
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