Math of Finance

l. Laura is buying a car for $9, 875.00. An 80% loan is taken out for 3 yeqrs at l5Yo ,
compounded monthly. How much are her monthly payments? ' t') l(-- tJ, ,4 è.r

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3. How much should you deposit initially in an account paying 1004 compounded
semi-amually in order to have $25 000 in l0 years? .-'
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4. How much is S40 500 in * at }oÂcompounded quarterly for 5 years worth?
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5. A couple estimates that they will need $20 000 in cash to put down on a house 4
years from today. How much should they deposit eaqh ryonth into an account r-
6oÂperyear,compounde{monthly?
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How muchin-tèrest is earned on an anngity where $1 000 is deposited æmi;)
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1. DGS, Inc., estimates that they will need more office equipment costing $25,000-in
15 months. How much should they deposit monthly into an account eatning90Â
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A family paid $2,000 down on a car and agreed to pay $254'40 per month for 3
years. tf tire interest rate was 9olo compounded monthly, what was the selling price
of the car? '
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3. Paul wants to establish an account to save for his retirement. He estimates that he
will need $250,000 in 20 years. How much must he pay monthly into an account
earning SYopery"* monthly? '
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4. $100 is invested in a savings account at 60Â compounded monthly. How much

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will be in the accoyntin 5 years and 1 month?
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5. What is the present value of $10,000 at 6Yo compounded quarterly for 10 years?
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