(use financial calculator if possible)

Part II 1. A smooth used-car salesman is offering you a great deal on a "preowned" car. He says, "For only five annual end-of-the year payments of $1,980, the beautiful Honda Civic can be yours." If you can borrow money a 4.56%, what is the price of the car? If you are to make the payment at the beginning of the year, what is the price of the car? (4 points) 2. You borrow a 15-year $289,000 mortgage loan at annual interesate of 3.50%. a. What is the monthly mortgage payment for your mortgage (fayment is made at the end of each month)? b. Find the amount of principal paid, interest paid, and the ending balance for the first month. C. Find the amount of principal paid, interest paid, and the ending balance for the last month (i.e., month 180) d. If you pay $200 more each month for principal payment in addition to the monthly payment you calculate in part (a), you can pay off the loan in how many months (or years)? e. You don't pay an extra amount each month. But, your lender allows you to pay biweekly, you can pay off the loan in how many years (or months)? (10 points) 3. Today is Denise's 30th birthday and she determines to become a millionaire by age sixty- five. She plant to start saving annually at her 30th birthday for 35 years. She anticipates an annual return of 4.5% on her investments. How much does she need to save annually to be a millionaire at her sixty-five birthday? If she saves monthly for 35 years, how much does she need to save monthly to achieve her goal? (draw a simple time line for this question) (6 points)

Part II 1. A smooth used-car salesman is offering you a great deal on a "preowned" car. He says, "For only five annual end-of-the year payments of $1,980, the beautiful Honda Civic car be yours." If you can borrow money a 4.56%, what is the price of the car? If you are to make the payment at the beginning of the year, what is the price of the car? ( 4 points) 2. You borrow a 15 -year $289,000 mortgage loan at annual intere ate of 3.50%. a. What is the monthly mortgage payment for your mortgage (fayment is made at the end of each month)? b. Find the amount of principal paid, interest paid, and the ending balance for the first month. c. Find the amount of principal paid, interest paid, and the ending balance for the last month (i.e., month 180) d. If you pay $200 more each month for principal payment in addition to the monthly payment you calculate in part (a), you can pay off the loan in how many months (or years)? e. You don't pay an extra amount each month. But, your lender allows you to pay biweekly, you can pay off the loan in how many years (or months)? (10 points) 3. Today is Denise' 30th birthday and she determines to become a millionaire by age sixtyfive. She plant to start saving annually at her 30th birthday for 35 years. She anticipates an annual return of 4.5% on her investments. How much does she need to save annually to be a millionaire at her sixty- five birthday? If she saves monthly for 35 years, how much does she need to save monthly to achieve her goal? (draw a simple time line for this question) (6 points)