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# 1 Derek decides to buy a new car. The dealership offers him a choice of paying $ 5 8 6 . 0 0 per

#1
Derek decides to buy a new car. The dealership offers him a choice of paying $586.00 per month for 5 years (with the first payment due next month) or paying some $28,691.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options?
Attempts
Answer format: Percentage Round to: 3 decimal places (Example: 9.243%,% sign required. Will accept decimal format rounded to 5 decimal places (ex: 0.09243))
#2
Derek wants to withdraw $11,119.00 from his account 3.00 years from today and $12,225.00 from his account 15.00 years from today. He currently has $2,308.00 in the account. How much must he deposit each year for the next 15.0 years? Assume a 6.34% interest rate. His account must equal zero by year 15.0 but may be negative prior to that.
Attempts R
Answer format: Currency: Round to: 2 decimal places.
#3
Derek currently has $10,563.00 in an account that pays 4.00%. He will withdraw $5,296.00 every other year beginning next year until he has taken 6.00 withdrawals. He will deposit $10563.0 every other year beginning two years from today until he has made 6.0 deposits. How much will be in the account 25.00 years from today?
Attempts R
Answer format: Currency: Round to: 2 decimal places.
Derek can deposit $292.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 12.00% and compounds interest monthly. Derek can deposit $2,487.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest
Attempts R
annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years?
Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%,% sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))
#5
Assume the real rate of interest is 3.00% and the inflation rate is 3.00%. What is the value today of receiving 13,315.00 in 7.00 years?
not
Answer format: Currency: Round to: 2 decimal places.
Attempts R
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