6). Zack Sebring wants to make to take his family on a cruise in 4 years and he

Question

6). Zack Sebring wants to make to take his family on a cruise in 4 years and he estimates that the cost of the cruise will be $16,500. How much money should he deposit each month into an account that pays 3.99% compounded monthly in order to have the needed money? (Round your answer to the nearest penny.)

A) $31.82 B) $144.12 C) $317.62 D) $2,636.15 E) $2,718.66

7). What is the future value of an annuity due if quarterly payments of $2,000 are made for 6 years at 5.4% compounded quarterly? (Round your answer to the nearest penny.)

A) 14,483.51 B) $56,244.98 C) 57,004.29 D) $71,117.45 E) 72,300.61

8). Which of the following two statements about ordinary annuities is/are true?

A) the frequency of payments and the frequency of interest compounding will always be the same. B) Payments are always made at the end of each payment period. C) only statement A is true D) only statement B is true E) Neither statement A or statement B is true F) Both statements A and statement B is true

9). Suppose that you are looking to buy a house and can afford a down payment of $25,000 and monthly payments of $1,250 on a 30-year loan. If you are able to get a 30-year loan at 7.5% interest compounded monthly, how expensive of a home can you afford? (Round your answer to the nearest thousand dollars.)

A) $154,000 B) $179,000 C) $204,000 D) $229,000 E) $252,000

10). Find the payment necessary to amortize a loan of $38,000 in 13 years if payments are made semiannually and interest is charged at a rate of 8.125% compounded semiannually. (Round your answer to the nearest penny.)

A) $2,296.96 B) $2,393.78 C) $2,542.16 D) $2,654.31 E) $3,115.92

Explanation / Answer

6) C)317.62

7)B)56244.98

8)A) B) F)

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.