1. Ravi Shankar plans to purchase a car for $62,800 and he has $8,200 as a down payment. He will need to borrow the rest and plans to get a loan for 3 years at 3.90%. His monthly payments on the loan will be closest to: A. $1,432.13. B. $1,609.58. C. $1,250.53.

2. The village of Brompton has a bond obligation maturing in 5 years and will need to make a payment of $1,215,000. The treasurer wishes to make an investment today that will provide the needed funds at the bond's maturity. The relevant interest rate is 2.80%. The amount of the investment needed today is closest to: A. $1,155,548.14. B. $1,474,103.85. C. $1,058,304.65.

3.

Over the life of a conventional 5-year car loan for $28,745 at 5.125%, total interest paid is closest to:

A. $32,646.08. B. $3,901.08. C. $7,375.91.

4. Rank the following certificates of deposit from highest to lowest effective rates:

A 4 years at 18.03% compounding every other month B 4 years at 18.10% compounding quarterly C 2 years at 18.00% compounding monthly D 2 years at 17.90% compounding twice a month

A. D, C, A, B B. C, D, A, B C. B, A, C, D