Math1313-Chapter5-Identify-problem-with-key

# Math1313-Chapter5-Identify-problem-with-key - Chapter 5...

This preview shows pages 1–2. Sign up to view the full content.

Chapter 5: Math of Finance Problems Identify the type of problem. 1. Anna wants to have \$5,000 saved when she graduates from college so that she will have a down payment for a new car. Her credit union pays 5% annual interest compounded monthly. How much money should she deposit each month to have the money available when she graduates in 3 years? 2. Bill bought a new car. His financing deal was a 5 year loan at 9.98% annual interest compounded monthly. His monthly payment was \$421.25 and he paid no money down. What was the total purchase price of the car? 3. Sergio wants to have \$5,000 in the bank in 3 years to pay for an Alaskan cruise. How much cash should he deposit today, if the bank pays 4% annual interest compounded quarterly, if he wants to be sure to have the funds available in 3 years? 4. Edwin and Frances are buying a new home. The purchase price is \$155,000. They will make a 10% down payment on the house. Their loan for the house is a 30 year conventional loan at 6.75% per year compounded monthly. Find their monthly payment. 5. Grace decides to start a savings program when she gets her first job after graduation. She deposits \$2,500 into her credit union savings account. The credit union pays 3.8% annual interest compounded quarterly. How much money will she have in the account after 4 years? 6. Helen bought a new computer. The finance company charged her 15% per year compounded monthly. Her monthly payments were \$88.23 for 2 years and she made no down payment. What was the original price of the computer? 7.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

Math1313-Chapter5-Identify-problem-with-key - Chapter 5...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online