Topic Test Answers

Tetsuo has decided to purchase a new car. He decides to put 10% down and finance the remaining balance. The bank offers Tetsuo a 36 month loan at 6.71%. If the car is valued at $32,000, what will his monthly payments be?a.$983.93c.$782.65b.$885.45d.$688.88

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 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

It's the holiday season and you are working for a packing company that specializes in holiday fruit cakes. For Christmas this year, the number of clients requesting fruit cakes has more than tripled and orders need to be shipped prior to the New Year. Your supervisor has asked you to work 15 hours more than a normal 40 hour work week, including Christmas day, which falls on a Friday. Therefore, one of your regular 8 hour days will be paid at the holiday rate. You get paid $10.00 per hour plus you get time and a half for overtime and double pay for the holidays. What will your gross base pay be for the week? a.$505c.$705b.$605d.$805

As part of your retirement plan, you want to set up an annuity in which a regular payment of $35,000 is made at the end of each year. You need to determine how much money must be deposited earning 6% compounded annually in order to make the annuity payment for 20 years.a.$391,125.87c.$397,502.32b.$395,083.12d.$401,447.24