Installment Loans Answers

You have sold your home and would like to travel the European country side. While you are out of the country, you would like the profit that you made on the sale of your home to gain interest while you are away in Europe. You made a profit of $25,000 on the sale of your home, and you invest this amount into an account paying 7.8% interest compounded annually. If you are to withdraw from the account over a 5 year period, such that by the end of the five year period there is zero dollars in the account, how much annually will you be able to withdraw from the account?a.$5,821.22c.$6,012.10b.$5,959.02d.$6,228.44

If you make monthly payments of $1,000 for 10 years, determine the total payment over the lifetime of the loan.a.$10,000c.$120,000b.$100,000d.$130,000

You have decided to purchase a car for $19,000. The credit union requires a 10% down payment and will finance the balance with a 9% annual interest loan for 36 months. The sales tax in your city is 8.3%, and the license and title charges are $75. What is the total purchase price of the car including tax, license, and title?a.$19,075.00c.$20,652.00b.$18,594.30d.$20,577.00

The National Science Foundation (NSF) offers grants to students who are interested in pursuing a college education. The student must be enrolled full time (12 credit hours or more), and hold a grade point average of 3.8. The NSF will pay $9,500 per year towards tuition for 4 years. The initial amount is placed into an account paying 7.8% compounded annually, and the tuition is drawn from the account until the remaining balance is zero dollars. Determine the initial amount invested by the NSF. Round your answer to the nearest dollar.a.$30,000c.$35,036b.$31,606d.$38,000

You have decided to purchase a car for $22,346.16. The credit union requires a 10% down payment and will finance the balance with a 5.4% annual interest loan for 36 months. The sales tax in your city is 7.6%, and the license and title charges are $125.13. Determine the amount that the credit union will finance you for. Round your answer to the nearest cent.a.$24,179.10c.$21,761.20b.$24,169.60d.$21,752.64

You have sold your home and would like to travel the European country side. While you are out of the country, you would like the profit that you made on the sale of your home to gain interest while you are away in Europe. You made a profit of $25,000 on the sale of your home, and you invest this amount into an account paying 7.8% interest compounded annually. If you are to withdraw from the account over a 5 year period, such that by the end of the five year period there is zero dollars in the account, how much annually will you be able to withdraw from the account?a.$5,821.22c.$6,012.10b.$5,959.02d.$6,228.44

You have just received an inheritance of $28,000 and would like to invest it into an account. The bank offers two investment plans, one for 4 years at 5.8% compounded annually and another for 3 years at 7.083% 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?a.3 year account; $32,056.89c.3 year account; $24,130.77b.4 year account; $42,742.52d.4 year account; $32,174.36

Big Ed’s car dealership is running a special on 2008 trucks. Big Ed offers financing at a rate of 6.71% on a loan with a term of 36 months, but he requires the customer to make a down payment of 15% of the cost of the vehicle. You are interested in a Car Crusher truck that costs $25,230. Not including the down payment, how much will you pay over the lifetime of the loan? a. $27,924.84 c. $23,735.88 b. $25,789.32 d. $21,445.50 Please select the best answer from the choices provided

The Academy for Academic Excellence has just announced their winner for the most successful student in mathematics. This student will receive a grant for their college education as well as national recognition for academic excellence in the field of mathematics. The grant will cover $12,177.17 of the cost of school per year for 5 years. If the initial amount is invested into an account over the five years, paying an annual interest rate of 5.5%, and you are to withdraw from this account until the remaining balance after the 5 years is zero dollars, determine the initial amount of the grant. Round your answer to the nearest dollar.a.$52,000c.$60,886b.$55,200d.$64,235

Using technology, determine the semi-annual payment on a 3 year loan of $8,561 at 9.1% compounded semi-annually. Round your answer to the nearest cent.a.$1,662.47c.$1,925.92b.$1,914.11d.$1,991.12

What is the first step when solving present or loan amortization using a formula?a.decide what the monthly payment will bec.determine the periods in the problem, which is the number of periods per yearb.apply the present amortization formula to determine the balanced.determine the interest rate in the problem

You have just received an inheritance of $28,000 and would like to invest it into an account. The bank offers two investment plans, one for 4 years at 5.8% compounded annually and another for 3 years at 7.083% 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.a.4 year account; $8,043.59c.4 year account; $10,436.34b.3 year account; $10,685.63d.3 year account; $8,281.88

Google has just purchased your website that reviews GPS systems. You made a profit of $65,000. You would like to invest the $65,000 into an account that pays you an annual compounded interest rate of 5.5%. 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.a.$6,500c.$7,251.31b.$7,023.45d.$8,623.40

Mari has just made her last payment on her car. The lifetime of the loan was 36 months. The bank financed her for $15,000 at 6.71%. How much did Mari actually pay, after she made her last payment, for the car?a.$15,000c.$17,001.20b.$16,602.12d.$18,205.30

Using technology, determine the present value given that you make quarterly payments of $1,635 at 4.2% compouded quarterly over a 3 year period. Round your answer to the nearest cent. a. $15,168.06 c. $19,180.84 b. $19,188.94 d. $18,344.05 Please select the best answer from the choices provided

Using technology, determine the present value given that you make semi-annual payments of $2,527 at 6.1% compouded semi-annually over a 6 year period. Round your answer to the nearest cent. a. $25,078.86 c. $25,146.48 b. $20,963.57 d. $21,070.31 Please select the best answer from the choices provided

Mari has just made her last payment on her car. The lifetime of the loan was 36 months. The bank financed her for $15,000 at 6.71%. How much did Mari actually pay, after she made her last payment, for the car?a.$15,000c.$17,001.20b.$16,602.12d.$18,205.30

Using technology, determine the quarterly payment on a 4 year loan of $16,231 at 5.1% compounded quarterly. Round your answer to the nearest cent. a. $1,125.69 c. $1,518.85 b. $1,127.86 d. $1,508.31 Please select the best answer from the choices provided

Using technology, determine the semi-annual payment on a 3 year loan of $8,561 at 9.1% compounded semi-annually. Round your answer to the nearest cent.a.$1,662.47c.$1,925.92b.$1,914.11d.$1,991.12

You have decided to purchase a car for $19,000. The credit union requires a 10% down payment and will finance the balance with a 9% annual interest loan for 36 months. The sales tax in your city is 8.3%, and the license and title charges are $75. What is the total purchase price of the car including tax, license, and title?a.$19,075.00c.$20,652.00b.$18,594.30d.$20,577.00

If you make monthly payments of $1,000 for 10 years, determine the total payment over the lifetime of the loan.a.$10,000c.$120,000b.$100,000d.$130,000

You have just received an inheritance of $28,000 and would like to invest it into an account. The bank offers two investment plans, one for 4 years at 5.8% compounded annually and another for 3 years at 7.083% 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.a.4 year account; $8,043.59c.4 year account; $10,436.34b.3 year account; $10,685.63d.3 year account; $8,281.88

The National Science Foundation (NSF) offers grants to students who are interested in pursuing a college education. The student must be enrolled full time (12 credit hours or more), and hold a grade point average of 3.8. The NSF will pay $9,500 per year towards tuition for 4 years. The initial amount is placed into an account paying 7.8% compounded annually, and the tuition is drawn from the account until the remaining balance is zero dollars. Determine the initial amount invested by the NSF. Round your answer to the nearest dollar.a.$30,000c.$35,036b.$31,606d.$38,000

The Academy for Academic Excellence has just announced their winner for the most successful student in mathematics. This student will receive a grant for their college education as well as national recognition for academic excellence in the field of mathematics. The grant will cover $12,177.17 of the cost of school per year for 5 years. If the initial amount is invested into an account over the five years, paying an annual interest rate of 5.5%, and you are to withdraw from this account until the remaining balance after the 5 years is zero dollars, determine the initial amount of the grant. Round your answer to the nearest dollar.a.$52,000c.$60,886b.$55,200d.$64,235

You have decided to purchase a car for $22,346.16. The credit union requires a 10% down payment and will finance the balance with a 5.4% annual interest loan for 36 months. The sales tax in your city is 7.6%, and the license and title charges are $125.13. Determine the amount that the credit union will finance you for. Round your answer to the nearest cent.a.$24,179.10c.$21,761.20b.$24,169.60d.$21,752.64