Problem 5-39 Loan Payments (LG5-9)

A.You wish to buy a $27,500 car. The dealer offers you a 6-year loan with a 7.2 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Payment = ...... pre month

B.How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Payment = ...... pre month

Problem 5-51 Investing for Retirement (LG5-4, LG5-9)

Monica has decided that she wants to build enough retirement wealth that, if invested at 8 percent per year, will provide her with $4,400 of monthly income for 20 years. To date, she has saved nothing, but she still has 25 years until she retires.

How much money does she need to contribute per month to reach her goal? First compute how much money she will need at retirement, then compute the monthly contribution to reach that goal. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Contribution per month = ?