QUESTION#1 You want to purchase an automobile for $25,115. The dealer offers you 0% financing for 48 months or a $6,678 rebate. You can obtain 6% financing for 48 months at the local bank. Which option should you choose?

Is this 0% Financing or Rebate?

How much money will you save per month? ________ (Round to two decimal places)

QUESTION #2 If you buy a computer directly from the manufacturer for $3,146 and agree to repay it in 36 equal installments at 1.82% interest per month on the unpaid balance, how much are your monthly payments? How much total interest will be paid?

Your monthly payment is

$______.

(Round to two decimal places.)

QUESTION 3: A sailboat costs $29,117. You pay 25% down and amortize the rest with equal monthly payments over a 8-year period. If you must pay 8.4% compounded monthly, what is your monthly payment? How much interest will you pay?

Monthly payments:

$_____

(Round to two decimal places.)

QUESTION #4

A company estimates that it will need $103,000 in 16 years to replace a computer. If it establishes a sinking fund by making fixed monthly payments into an account paying 6.3% compoundedmonthly, how much should each payment be?

The amount of each payment should be

$________