Solve each problem and round your answers to the hundredth decimal point 1. Stephanie is going to buy a car that costs $30,000. If she makes $650 a month payments for 48 months at 5.9% interest, how much was her down payment? 2. Fred is paying off a $24,000 loan over 4 years with $580 a month payments. If he will pay the entire loan off in that time, what is the interest rate? 3. How long will it take Gabriella to save $250,000 if she puts $475 a month into an annuity drawing 7.5% interest? 4.BCD Corporation is going to place $100,000 into an annuity. Then, it is going to add $25,000 a quarter to the annuity for the next 15 years. If the annuity draws 9% interest, how much will it be worth at the end of the time? 5. Karen decides to put the child-support payments from her previous husband into an annuity for the education of her two children. At the end of each month for 8 years, she puts $300 into a mutual fund that has yielded 9% compounded monthly. Find the amount of the annuity.
Solve each problem and round your answers to the hundredth decimal point 1. Stephanie is going to buy a car that costs $30,000. If she makes $650 a month payments for 48 months at 5.9% interest, how much was her down payment? 2. Fred is paying off a $24,000 loan over 4 years with $580 a month payments. If he will pay the entire loan off in that time, what is the interest rate? 3. How long will it take Gabriella to save $250,000 if she puts $475 a month into an annuity drawing 7.5% interest? 4.BCD Corporation is going to place $100,000 into an annuity. Then, it is going to add $25,000 a quarter to the annuity for the next 15 years. If the annuity draws 9% interest, how much will it be worth at the end of the time? 5. Karen decides to put the child-support payments from her previous husband into an annuity for the education of her two children. At the end of each month for 8 years, she puts $300 into a mutual fund that has yielded 9% compounded monthly. Find the amount of the annuity.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Solve each problem and round your answers to the
hundredth decimal point
1. Stephanie is going to buy a car that costs
$30,000. If she makes $650 a month payments for
48 months at 5.9% interest, how much was her
down payment?
2. Fred is paying off a $24,000 loan over 4 years
with $580 a month payments. If he will pay the
entire loan off in that time, what is the interest rate?
3. How long will it take Gabriella to save $250,000 if
she puts $475 a month into an annuity drawing
7.5% interest?
4.BCD Corporation is going to place $100,000 into
an annuity. Then, it is going to add $25,000 a
quarter to the annuity for the next 15 years. If the
annuity draws 9% interest, how much will it be
worth at the end of the time?
5. Karen decides to put the child-support payments
from her previous husband into an annuity for the
education of her two children. At the end of each
month for 8 years, she puts $300 into a mutual fund
that has yielded 9% compounded monthly. Find the
amount of the annuity.
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