The following set-up pertains to the following 2 questions

A bank is offering four - year car loan that should earn 11.0 % compounded monthly . Knowing that such interest rates are very high to attract customers the bank decides to offer car loans using Flat rates with monthly payments.

23. What Flat rate should the bank offer a customer who wants to borrow $25,000 to buy a Camry such that the bank generates an equivalent of 11.0 % ?

a . 6.31 %

b . 6.60 %

c . 7.80 %

d . 6.01 %

e . 6.90 %

24. Suppose that you took the loan to buy a car and after 13 months decided to change your car . In closing the loan the bank requires that you pay a 2 % penalty on early retirement the debt on top of the outstanding balance. What was the annual interest rate that you were charged over the period of loan (13 months)?

a . 13.98 %

b . 12.98 %

c . 13.48 %

d . 1468 %

e , 1249 %

25. This morning your account balance is $12,744, and this afternoon you wish to begin a new savings plan with this account. You plan to deposit $140 each semi-annum, with the first deposit today and last in six and a half years from today. The account earns annual interest of 9.9 % compounded quarterly . Find the account balance immediately after the last deposit

. a. $31,044.49

b. $26,810.18

c$23,930.74

d. $25,588.1s

e. $30,473.77