Question 14: (1 point)

We know the following two commands in Excel:

PMT(rate, nper, PV, FV)

FV(rate, nper, pmt, PV)

Which of the following Excel commands gives the monthly payment on a house that cost $225,000 with a down payment of $37,475. The loan was a conventional 15-yearloan with an annual interest rate of 3.8%.

(a)=FV(0.038/12,15,-225000,-37475)

(b)=PMT(0.038/12,180,-187525,0)

(c)=PMT(0.038/12,15,-225000,-37475)

(d)=FV(3.8/12,180,-37475,-225000)

(e)=PMT(3.8/12,180,0,-187525)

Question 15: (1 point)

Inour readings, we studied Craig's decision to buy a car. Craig knows the following two Excel commands that he used during the Quantitative Reasoning Process:

PMT(rate, nper, PV, FV)

FV(rate, nper, pmt, PV)

In step3 of the Quantitative Reasoning Process,quantitative tools, Craig used the following command in Excel:

=PMT(0.04/12, 7*12, -5000, 0)

The Excel output for this command was$68.34. Which of the following best describes whatthis output represents?

(a)The monthly payment on a car loan of $5000, with an interest rate of 0.04% for 84 months, will be $68.34.

(b)If Craig saves $68.34 per month in an account paying 4% interest he will be able to buy a $5000 car in 7 years.

(c)The monthly payment on a car loan of $5000 with an interest rate of 4% for 7 years will be $68.34.

(d)The monthly payment on a car loan of $5000, with an interest rate of 0.33% for 7 years, will be $68.34times 12 (or $820.08 per month).

(e)If Craig saves $405.85 per yearin an account paying 0.04% interest he will be able to buy a $5000 car in 84 years.