1. Alice Cohen buys a two-year-old Honda from a car dealer for $9,000. She put $500 down and finances the rest through the dealer at 13% add-on interest. If she agrees to make 36 monthly payments, find the size of each payment.
2. First National Bank offers two-year CDs at 9.12% compounded daily, and Citywide Savings offers two-year CDs at 9.13% compounded quarterly. Compute the annual yield for each institution and determine which is more advantageous for the consumer.
3. Find the present value that will give a future value of $9,280 at
compounded monthly for 2
years, 3 months.4. At age 25, Carrie establishes an Individual Retirement Account (IRA). If she invests $4000 per year for 30 years in an ordinary annuity, the account earns 7.75% per year, how much will she have in the account at age 55?
5. Joe wants to have $30,000 five years from now to use for a down payment on a house. How much should he deposit each month into an ordinary annuity that pays an annual rate of 7.7% in order ot achieve his goal?
6. Shirley Trembley bought a house for $187,600. She put 20% down and obtained a simple interest amortized loan for the balance at
for 30 years. a. Find the monthly payment.
b. Find the total interest