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

____?