questions 7-12

7. A wealthy citizen sets up a trust for scholarships at a local community college. The gift is for $3,500,000 and the money is distributed at the beginning of each year for the next 175 years. If the trust earns 5.25% compounded annually, how much is available for scholarships each year? A. $174,606.88 B. $183,773.74 C. $194,856.72 D. $204,100.66 B. You would like to remodel your kitchen at a cost of $13,000. Your bank will loan you the money at 8.2% for 4 years. Determine your monthly payment. A. $318.59 B. $316.43 C. $3,305.71 D. $1,090.82 9. If you purchase some living room furniture for $1,750 and the store finances the entire amount over 24 months at a monthly rate of 1.75%, what is your monthly payment? A. $30.63 B. $103.54 C. $89.92 D. $74.25 10. Several years ago you got a mortgage loan at 5.7% interest. You currently owe $38,746.77 with a monthly payment of $446.90. How long until the loan will be paid off? A. 112 months B. 184.78 months C. 72.78 months D. 32.15 months 11. Linda's grandmother loaned her $57,000 to help her start an Internet specialty clothing business for tall women. They agreed that Linda will pay the entire amount, together with interest at 3.75% compounded annually, In 6 years. Find the amount Linda will need to repay the loan. A. $69,391.95 B. $59,137.50 C. $69,825 D. $71,089.18 12. Linda's grandmother loaned her $57,000, interest-free, to help her start an Internet specialty clothing business for tall women. Linda must repay the $57,000, in one lump sum, in 6 years. How much could Linda deposit at the end of each month into a savings plan earning 4.26 compounded monthly so she will have the $57,000 in 6 years? A. $695.05 B. $44,322.45 C. $8,550.33 D. $697.48 D