Suppose a corporation buys a truck. The price of the truck is $200,000 and will be paid in 5 years at a rate of 3.6% APR, composed monthly. How much will be paid each month?

A. $8,179.85 B. $3,647.31 C. $7,200.00 D. $4,036.07 

Problem 8

Suppose you are 20 years old and you just graduated. You plan to retire at 70 with a retirement fund that must to provide you a monthly payment of $3000 at the beginning of each month for 30 years. How much you have to save at the end of each month until retirement if r=4.8% APR?

A. $153.54 B. $251.86 C. $230.31 D. $229.39 

Problem 9

How much money you will have 28 days from now if you invest an amount

$1,500 at an annual rate 24% APR with continuous compounding?

A. $1,527.87 B. $1,502.76 C. $1,555.24 D. $1,502.30 

Problem 10

Consider a bond issued at the beginning of 2017. It pays a coupon of 10 on October 30, and a coupon of 10 on Dec 31, together with the principal of 100 in December 31, 2017. It is now February 7th, 2017. The annual interest rate is r = 3.6% APR, continuous compounded. What is the present value of the bond?

A. $112.24 B. $117.17 C. $125.20 D. $116.25