QUESTION 1. Donald secured a 5-year car lease at 6.20% compounded annually that required him to make payments of $880.40 at the beginning of each month. Calculate the cost of the car if he made a downpayment of $1,750.

QUESTION 2. For 11 years, Janet saved $1,150 at the beginning of every month in a fund that earned 4.5% compounded annually.

a. What was the balance in the fund at the end of the period?

b. What was the amount of interest earned over the period?

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Question 5 of 6 A contract requires lease payments of $900 at the beginning of every month for 8 years. a. What is the present value of the contract if the lease rate is 4.75% compounded annually? Round to the nearest cent b. What is the present value of the contract if the lease rate is 4.75% compounded monthly