Two banks offer the following terms for personal loans up to $3000.

Bank A: 7.8% per year, stretch payments over 4 years.

Bank B: 16% per year, stretch payments over 5 years.

Which bank will have lower monthly payments?

Group of answer choices

Bank A

Bank B

The payments would be the same (to the nearest dollar).

Not enough information. We need to know the exact amount that is borrowed.

Question 2

How much do you have to deposit each month in order to have $40,000 five years from now? The account pays 2.8% annual interest, compounded monthly.

Group of answer choices

$715.20

$666.67

$621.86

$257.29

Question 3

You want to buy a car, and you can afford no more than $120 per month in car payments. If you can take out a 2-year loan at 7.8% per year, how much is the most you should borrow?

Group of answer choices

$2465.25

$2658.62

$2880.00

$3346.80

Question 4

Grandma wants to give Junior an account that will pay him $150 allowance every month while he's in college (6 years). The account earns 1.5% annual interest, compounded monthly. How much money does she need to deposit today?

Group of answer choices

$10,322.09

$10,800.00

$11,213.19

$11,293,53

Question 5

A firm can lease office furniture for 5 years for $20,000 per year, or it can purchase the furniture for $80,000 outright. Which is a better choice if the firm can invest its money at 10% annual interest rate? (Assume the furniture will have no remaining value at the end of the 5 years.)

Group of answer choices

The company would need $62,092 to lease the furniture; they should lease.

The company would need $71,632 to lease the furniture; they should lease.

The company would need $75,816 to lease the furniture; they should lease.

The company would need $100,000 to lease the furniture; th