You will deposit $1000 into the bank today into an account that pays 12 percent nominal interest compounded quarterly. How much money will you have in the bank 5 years from today if you do not take any money out of the account?

• A. $1,806.11
• B. $1,000.00
• C. $1762.34
• D. 2,107.18
• E. Something Else

You are considering buying a house. In order to buy the house, today at time 0, you will borrow $400,000 at a rate of 12 percent nominal interest, compounded monthly. You will make monthly payments with the first payment due one month after you buy the house. The loan will be a fixed rate 30-year loan. How much will the payments be on the house?

• A. $4,073.71
• B. $4,114.45
• C. $1,367.35
• D. $49,657.46
• E. Something Else

You have just found your dream home. In order to buy the house, today at time 0, you will borrow $200,000. The interest rate on the loan will be 6 percent nominal interest, compounded monthly. You will pay off the loan with monthly payments over the next 30 years. The first payment is due one month after you get the money from the loan. As such, your scheduled payments will be $1,199.10 per month. Instead of making the $1,199.10 payments, you make payments of $1,400 per month. How long will it take you to pay off the loan?

• A. 251.18
• B. 248.70
• C. 360
• D. 108.06
• E. It is not possible to solve this problem as the calculator gives and error.