21.Dora's VISA balance is $6,850. She may pay it off in 20 equal end-of-month payments of $380 each. What is the approximate interest rate that Dora is paying?

Answer:

22. Rose Company purchased a delivery truck at a price of $35,000. Rose paid $2,000 in cash and the rest was financed at 6%. The financing requires 30 equal monthly payments at the end of each month. What would be the amount of monthly payment?

Answer:

23.Chris Spear invested $12,000 today in a fund. To what amount would the investment growin 3 years if the fund earns 8% annual interest compounded semiannually?

Answer:

24. Tony Bautista needs $30,000 in 4 years. What amount must he invest today if his investment earns 10% compounded annually?

Answer:

25.Bo Newman will invest $10,000 today in a fund that earns 5% annual interest. How many years will it take for the fund to grow to $17,100?

Answer:

26.Morgan Freeman is investing $16,380 at the end of each year in a fund that earns 10%interest. In how many years will the fund be at $100,000?

Answer:

27.Leon Tyler's VISA balance is $793.15. He may pay it off in 12 equal end-of-month payments of $75 each. What interest rate is Leon paying?

Answer:

28.Which of the following is FALSE about bonds issued at a DISCOUNT?

a. The bonds are issued for an amount under its par value.

b. The book value (carrying value) of the bonds will decrease after each interest period

c. At maturity, the book value and the face amount will be equal.

d. At the time bonds were issued the market interest rate was higher than the coupon rate of

interest stated on the bond

Answer:

29. The Dukas diner has just purchased a new convection oven for $45,000. Dukas paid $5,000 down and is going to borrow the rest. The Manhattan Bank will loan money at 8% interest and requires three equal annual payments to pay-off the loan and interest. What are the annual payments over the next three years?

A. $15,521

B. $15,280

C. $13,333

D. $15,456

E. None of the above.

Answer:

30. The university spirit organization needs to buy a new trailer in which to haul the team mascot to the football games. A dealer in Jonesboro has agreed to the following terms: $1,000 down plus 20 monthly payments of $450. The local rate available for borrowing for the organization is

12% a year. What is the sale price of the trailer?

A. $10,000

B. $8,121

C. $1,000

D. $9,121

E. None of the above.