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Werner wants to save $110 000 in 4 years to buy a cottage. He plans to make equal monthly payments of $2104.32 into an account earning 4.3% per year compounded monthly. How would Werner's monthly payments change if he saves twice as much, $220 000? a) His payments would be twice as much. b) His payments would increase but be less than twice as much. U C) His payment would be more than twice as much. a) His payments would decrease.

Werner wants to save $110 000 in 4 years to buy a cottage. He plans to make equal monthly payments of $2104.32 into an account earning 4.3% per year compounded monthly. How would Werner's monthly payments change if he saves twice as much, $220 000? a) His payments would be twice as much. b) His payments would increase but be less than twice as much. U C) His payment would be more than twice as much. a) His payments would decrease.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Werner wants to save $110 000 in 4 years to buy a cottage. He plans to make equal monthly payments of $2104.32 into an account earning 4.3% per year compounded monthly. How would Werner's monthly payments change if he saves twice as much, $220 000? a) His payments would be twice as much. b) His payments would increase but be less than twice as much. U C) His payment would be more than twice as much. a) His payments would decrease.
Transcribed Image Text:Werner wants to save $110 000 in 4 years to buy a cottage. He plans to make equal monthly payments of $2104.32 into an account earning 4.3% per year compounded monthly. How would Werner's monthly payments change if he saves twice as much, $220 000? a) His payments would be twice as much. b) His payments would increase but be less than twice as much. U C) His payment would be more than twice as much. a) His payments would decrease.
Peter borrows $24 500 at 6.2% per year compounded annually. He will pay it back by making equal annual payments of $4420.06 over 7 years. How would Peter's annual payments change if he borrows twice as much, $49 000? a) His payments would be exactly twice as much. b) His payments would be more than twice as much. U) His payments would increase but be less than twice as much. O d) His payments would decrease.
Transcribed Image Text:Peter borrows $24 500 at 6.2% per year compounded annually. He will pay it back by making equal annual payments of $4420.06 over 7 years. How would Peter's annual payments change if he borrows twice as much, $49 000? a) His payments would be exactly twice as much. b) His payments would be more than twice as much. U) His payments would increase but be less than twice as much. O d) His payments would decrease.
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