Question
Quantitative Problem: You need $13,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He
Quantitative Problem: You need $13,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 6 years, with the first payment to be made one year from today. He requires a 9% annual return.
What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent.
$
How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent.
Interest: $
Principal repayment: $
Quantitative Problem: You plan to deposit $1,600 per year for 5 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today.
What amount will be in your account at the end of 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.
$
Assume that your deposits will begin today. What amount will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.
$
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