Stereo Inc. sells a stereo system for $100 down and monthly payments of $90 for the next 3 years. If the interest rate is 2.25% per month , find:

a) The cost of the stereo.

Answer = $

b) The total amount of interest paid.

Answer = $

Mr. Smith is purchasing a $ 130000 house. The down payment is 20% of the price of the house.

He is given the choice of two mortgages:

a) a 20-year mortgage with an annual interest rate of 6 %, with interest compounded monthly.

Find

(i) the monthly payment: $

(ii) the total amount of interest paid: $

b) a 15-year mortgage with an annual interest rate of 6 %, with interest compounded monthly.

Find

(i) The monthly payment: $

(ii) the total amount of interest paid: $