QUESTION 1. E-Loan, an online lending service, recently offered 60-month auto loans at 4.8% compounded monthly to applicants with good credit ratings. If you have a good credit rating and can afford monthly payments of $551, how much can you borrow from E-Loan?

What is the total interest you will pay for this loan? You can borrow

$_______. (Round to two decimal places.)

QUESTION 2. SOLVE: PV=$15,343; n=94; i=0.012; PMT=?;

PMT=$____ (Round to two decimal places.)

QUESTION 3. Use the formula for the present value of an ordinary annuity or the amortization formula to solve the following problem. PV= $14,000; i=0.025; PMT=$500; n=?

n=____________

(Round up to the nearest integer.)

QUESTION4:

Acme Annuities recently offered an annuity that pays 3.9% compounded monthly. What equal monthly deposit should be made into this annuity in order to have $81,000 in 8 years?

The amount of each deposit should be

$_______.

(Round to the nearest cent.)