Question
test questions 5: a. Dempsey Electric wishes to pay off a debt of $28,000 in 3 years. What amortization payment would they need to make
test questions 5:
a. Dempsey Electric wishes to pay off a debt of $28,000 in 3 years. What amortization payment would they need to make every month, at 12% interest compounded monthly? (Use Table 12-2 from your text)
$625.00
$844.12
$930.00
$706.10
___?
b. Find the sinking fund payment you would need to make at the end of each year, at 5% interest compounded annually, to amount to $8,000 in 2 years. (Use the appropriate formula)
$2,719.86
$1,537.27
$2,128.56
$3,902.44
c. John deposited $2,000, at the END of every month for 2 years in a savings account. If the account paid 6% interest, compounded monthly, use Table 12-1 from your text to find the future value of his account.
$53,374.40
$44,320.00
$50,320.10
$50,863.92
d.
Peter deposits $500 at the END of every month for 3 years in a savings account. The account pays 12% interest, compounded monthly. Peter calculates that the future value of the ordinary annuity is ______________________.
$21,538.44
$5,803.58
$15,053.75
$8,303.58
____?
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