Amortization — Quiz Answers

Using technology, determine the present value given that you make quarterly payments of 1 dollars comma 635 at 4 point 2 percent compouded quarterly over a 3 year period. Round your answer to the nearest cent.

Google has just purchased your website that reviews GPS systems. You made a profit of 65 dollars comma 000 You would like to invest the 65 dollars comma 000 into an account that pays you an annual compounded interest rate of 5 point 5 percent You want to make annual withdrawals over the next 10 years such that by the end of this 10 year period, the amount remaining in the account will be zero dollars. Determine, from the given information, the amount of the annual withdrawals. Round your answer to the nearest cent.

You have just received an inheritance of 28 dollars comma 000 and would like to invest it into an account. The bank offers two investment plans, one for 4 years at 5 point 8 percent compounded annually and another for 3 years at 7 point 0 8 3 percent compounded annually. You want to make equal annual withdrawals from the account over the life time of the loan. Which investment will yield the highest return over the duration of the loan, given that the account will be zeroed out by the end of that period?

For a fixed loan amount, what happens to the monthly payment as the annual rate increases?

Using technology, determine the monthly payment on a 35 month loan of 28 dollars comma 000 at 8 point 1 percent compounded monthly. Round you answer to the nearest cent.

Using technology, determine the present value given that you make monthly payments of 250 point 0 0 dollars at 2 point 3 percent compounded monthly over a 5 year period. Round your answer to the nearest cent.

What is the first step when solving present or loan amortization using a formula?

Big Ed’s car dealership is running a special on 2008 trucks. Big Ed offers financing at a rate of 6 point 7 1 percent on a loan with a term of 36 months, but he requires the customer to make a down payment of 15 percent of the cost of the vehicle. You are interested in a Car Crusher truck that costs 25 dollars comma 230 Not including the down payment, how much will you pay over the lifetime of the loan?

You have decided to purchase a car for 19 dollars comma 000 The credit union requires a 10 percent down payment and will finance the balance with a 9 percent annual interest loan for 36 months. The sales tax in your city is 8 point 3 percent , and the license and title charges are 75 dollars What is the total purchase price of the car including tax, license, and title?

You have just received an inheritance of 28 dollars comma 000 and would like to invest it into an account. The bank offers two investment plans, one for 4 years at 5 point 8 percent compounded annually and another for 3 years at 7 point 0 8 3 percent compounded annually. You want to make equal annual withdrawals from the account over the life time of the loan. Which investment will yield the highest annual withdraw and by what amount, given that the account will be zeroed out by the end of that period? Round your answer to the nearest cent.