1.

Future value with periodic

rates.

Matt Johnson delivers newspapers and is putting away

$16

at the end of each

month

from his paper route collections. Matt is

8

years old and will use the money when he goes to college in

10

years. What will be the value of Matt's account in

10

years with his

monthly

payments if he is earning

7%

(APR),

8%

(APR), or

14.5%

(APR)?

What will be the value of Matt's account in

10

years with his

monthly

payments if he is earning

7%

(APR)?

$nothing

(Round to the nearest cent.)

2.

Amortization schedule with periodic

payments.

Moulton Motors is advertising the following deal on a new Honda Civic: "Monthly payments of

$396.02

for the next

60

months and this beauty can be yours!" The sticker price of the car is

$20,000.

If you bought the car, what interest rate would you be paying in both APR and EAR terms? What is the amortization schedule of the first six payments?

If you bought the car, what monthly interest rate would you be paying?

nothing%

(Round to four decimal places.)

3.

Amortization schedule with periodic

payments.

Moulton Motors is advertising the following deal on a used Honda Accord: "Monthly payments of

$318.92

for the next

36

months and this beauty can be yours!" The sticker price of the car is

$9,200.

If you bought the car, what interest rate would you be paying in both APR and EAR terms? What is the amortization schedule of the first six payments?

If you bought the car, what monthly interest rate would you be paying?

nothing%

(Round to five decimal places.)