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The purchase of the car that Joe dreams about can be accomplished by making payments of $300 a month for six years, if the first

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The purchase of the car that Joe dreams about can be accomplished by making payments of $300 a month for six years, if the first payment is made on February 1.1995. and the last payment is made on January 1.2001. The financing company charges 6% nominal interest rate compounded monthly. Joe wants to be able purchase the ear for cash on January 1.1995. just after he graduates from college. Joe has a job and started making depositing of S275 each month into an account that pays 9% compounded monthly beginning with the first deposit on February 1.1990. The last deposit is to be made on January 1.1995. Will Joe have saved up enough money to purchase the car? If not. how mu ch should Joe be saving each month if all other conditions remain the same? Joe Show of T bought a Mercedes when he came to Tech as an engineering student (so that his feet would not get cold on the way to those early morning classes). The Mercedes was purchased by making a loan that was to be paid off in 20 equal, quarterly payments. The interest rate on the loan was 12% per year with quarterly compounding. After four years, at the time that Joe made his 16th payment, he got married (too many dates!) and sold the Mercedes to his buddy Sam Pledge. Sam made arrangements with Joe's bank to refinance the loan and to pay Joe's unpaid balance by making 16 equal quarterly payments at the same interest rate that Joe was paying. After 3 k years, at the time that Sam made his 13th payment. Sam flunked out (too many dates!) and sold the car to Nancy. Nancy paid the bank S2.000 cash (she had a good summer job!) to pay the loan balance. What was the amount of Joe's loan to purchase the Mercedes when it was new? Lifetime Savings Accounts, known as LSAs, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests SI0.000 now and then increases his deposit by SI000 each year through year 20. how mu ch will be in the account immediately after the last deposit, if the account grows by 12% per year

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