An installment contract for the purchase of a car requires payments of $260.79 at the end of each month for 3.75 years. Interest is 6% per annum compounded monthly.

(a) What is the amount financed?

(b) How much is the interest cost?

2. How much interest is included in the future value of an ordinary simple annuity of $1,100 paid every six months at 12% compounded semi-annually if the term of the annuity is 8.5 years?

The interest is $

3. Starting three months after her grandson Robin's birth, Mrs. Devine made deposits of $80 into a trust fund every three months until Robin was eighteen years old. The trust fund provides for equal withdrawals at the end of each quarter for two years, beginning three months after the last deposit. If interest is 5.12% compounded quarterly, how much will Robin receive every three months?

Robin will receive $

4. To purchase a specialty guitar for his band, for the last two years JJ Morrison has made payments of $85 at the end of each month into a savings account earning interest at 5.34% compounded monthly. If he leaves the accumulated money in the savings account for another year at 6.85% compounded quarterly, how much will he have saved to buy the guitar? The balance in the account will be $