Question
1.Jill wants to buy a car but needs to calculate how much she can afford to borrow. The maximum she can repay each month-end is
1.Jill wants to buy a car but needs to calculate how much she can afford to borrow. The maximum she can repay each month-end is $570 per month and the bank has indicated it will charge a fixed 6.1% p.a compounding monthly. If she takes a loan for 5 years how much can she afford to borrow? (Do not use the $ sign or commas; include cents e.g 24500.09)
2.Payments of $1800 per month are deposited into a fund at the end of each month for 9 years. If interest is 5.8% p.a. compounding monthly, the size of the fund at the end of 9 years will be (to nearest dollar but dont include $ sign or commas):
3.Calculate the nominal interest p.a. compounded daily that is equivalent to 3.7% p.a. compounded quarterly. (Correct your answer to the nearest 0.01%, e.g. 2.12%)
4.You deposit 9,000 into your bank account every month starting in one month. You earn an interest rate of 8.3% p.a. compounded quarterly. How much will in your account after 5 years? (Correct your answer to the nearest cent without any unit (Do not put $ in front of your answer.). Do not use "," in your answer. e.g. 123456.78
5.I have arranged to borrow $7,000 from my parents toward a holiday. I will repay the loan over 2 years in equal year-end payments. If the interest rate is 9.3% p.a. compounding monthly, my annual repayment is (rounded to nearest dollar; dont include the $ sign or commas):
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