13. 4 loan where the bemower rceives noney today and repays a single long som on a fusre dete ir caled at Balloon d. Pure discount e. Interest-only 13. Phil can alford $240 a month for five years for a car loan If the interese ratc is &.5 percent, how borrow to purchase a car? a$11,750.00 b$12,348.03 c. $11,697.88 d. $10,266.67 e. $10.400.00 14. You just purchased annuity price if the discount rate is 8.5 pencent? an annuity thas will pay you $24,000 a year for 25 years, starting today, What was the purchase a. $241,309 b. $245,621 . $251,409 d $258319 e. $266498 15. You estimate that you will owe $39,950 in student loans by the time you graduate. The interest rate is 3.75 percent. you want to have this debt paid in full within 10 years, how much must you pay cach month? a 5411.09 b. 5399,74 c. $414.28 d $436.05 e. $442 50 16. Goods Guys Foods established a trust fund that provides $125,000 in scholarships each year for needy students. The trust fund cams a fixed 7.25 percent rate of return. How much money did the firm contribute to the fund assuming that only the interest income is distributed? a. $1,687,450 b. $1,478,023 c. $1,333,333 d. $1,724,138 e$1,600,000 7 What is the effective annual rate if a bank charges you an APR of 8.25 percent, compounded quarterly? a. 8.32 percent b. 8.38 percent c. 8.42 percent d. 8.51 percent e. 8.61 percent 156 157