p.v_of_annuity_sheet.docx - Sheet(6 Present Value of an...

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Sheet (6) Present Value of an Annuity Problem (1) E-loan, an online lending service, recently offers 36-month auto loans at 4.5% compounded monthly to applicants with good credit ratings. If you have a good credit rating and can afford monthly payments of $438, how much can you borrow from e-loan? What is the total interest you will pay? Problem (2) If you buy a computer directly from the manufacturer for $2323 and agree to repay it in 48 equal installments at 1.59% interest per month on the unpaid balance, how much are your monthly payments? How much total interest will be paid? Problem (3) You want to purchase an automobile for $34,864. The dealer offers you 0% financing for 48 months or a $3196 rebate. You can obtain 5.7% financing
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