Question $9$

ABC Corporation is planning to expand its production facility in $4$ years. The estimated cost of

the expansion project is $$200,000.$ If the sinking fund earns an interest rate of $6\mathrm{.}5\%$ per year,

how much should the company contribute semi$-$annually to the sinking fund?

$$22,292\mathrm{.}53$

$$33,292\mathrm{.}53$

$$72,292\mathrm{.}53$

$$2,292\mathrm{.}53$Question $7$

Brad wants to save for a dream vacation and keeps $$300$ aside every month for $5$ years in an

account that pays interest of $3\%$ compounded monthly. How much will be in the account at

the end of $5$ years?

$$19,394\mathrm{.}014$

$$1,394\mathrm{.}014$

$$39,394\mathrm{.}014$

$$9,394\mathrm{.}014$

Question $8$

A family bought a car for $40,000.$ They made a down payment of $8,000.$ They take out a $5-$

year auto loan for $$32,000$ at an annual interest rate of $4\%.$

Find the total amount of interest paid when the loan is amortized over $5$ years

$$2,998\mathrm{.}24$

$$27,998\mathrm{.}24$

$$20,998\mathrm{.}24$

$$3,359\mathrm{.}72$Question $4$

John contributes $$20,000$ a year into an investment portfolio. How much will he have in the

portfolio after $40$ years if it earns interest at a rate of $5\%$ yearly compounded quarterly?

$$70,076,833\mathrm{.}42$

$$10,076,833\mathrm{.}42$

$$80,076,833\mathrm{.}42$

$$40,076,833\mathrm{.}42$

Question $5$

Lea borrowed $$15,000$ from her parents and promised to repay it over a $5-$year period

through equal installments made at the end of each quarter. If an interest rate of $4\%$ per year

is charged on the unpaid balance and interest calculations are made at the end of each

quarter. What is the beginning balance for the third payment?

$$13,630\mathrm{.}73$

$$15,630\mathrm{.}73$

$$14,630\mathrm{.}73$

$$16,630\mathrm{.}73$