$3$

$11.$ You want to buy a car and a local bank will lend you $$26,000.$ The loan will be fully

amortized over $4$ years, and the nominal interest rate will be $4\mathrm{.}99\%$ with monthly

compounding interest. What will the monthly loan payment be$?$

A$.$ $$490\mathrm{.}53$

B$.$ $$598\mathrm{.}64$

C$.$ $$1,436\mathrm{.}10$

D$.$ $$6,567\mathrm{.}77$

E$.$ None of the above

$12.$ If you borrow $$11,500$ and promise to make payments of $$3,130$ at the end of each

year for $4$ years, what is the implied rate of interest on this loan?

A$.3\mathrm{.}49\%$

B$.6\mathrm{.}10\%$

C$.8\mathrm{.}65\%$

D$.11\mathrm{.}24\%$

E$.$ None of the above

$13.$ What is the present value of an annuity that pays $$7000$ annually for $12$ years if the

required rate of return is $8\mathrm{.}5\%?$

A$.$ $$45,929\mathrm{.}44$

B$.$ $$51,412\mathrm{.}80$

C$.$ $$116,844\mathrm{.}75$

D$.$ $$136,844\mathrm{.}75$

E$.$ None of the above