Question
1. A car company is offering a choice of deals. You can receive $1,500 cash back on the purchase or a 3.7 percent APR, 5-year
1. A car company is offering a choice of deals. You can receive $1,500 cash back on the purchase or a 3.7 percent APR, 5-year loan. The price of the car is $18,500 and you could obtain a 5-year loan from your credit union, at 7.7 percent APR. Which deal is cheaper?
2. Your client has been given a trust fund valued at $1.63 million. She cannot access the money until she turns 65 years old, which is in 20 years. At that time, she can withdraw $18,500 per month. |
if the trust fund is invested at a 3.5 percent rate, compounded monthly, how many months will it last your client once she starts to withdraw the money? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
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If you start making $90 monthly contributions today and continue them for five years, whats their future value if the compounding rate is 11.00 percent APR? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
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