Math 1313
Homework 11
Section 5.2
1
Use the following problem to answer questions 1 and 2.
Corrie bought a new flat screen 60 inch television and a speaker system from a local
electronics store on credit.
The store will charge 18% per year compounded monthly.
Their monthly payments are $248.80 for 3 years.
What is the cash price of her purchase?
1.
Identify the type of problem.
a.
Future Value with compound interest
b.
Present Value with compound interest
c.
Future Value of an Annuity
d.
Present Value of an Annuity
e.
Future Value with simple interest
f.
None of the above
2.
Answer the question in the problem.
a.
$6,881.98
b.
$7,442.31
c.
$8,956.80
d.
$11,762.26
e. $7,700.00
f.
None of the above
Use the following problem to answer questions 3 and 4.
Parents would like to have the funds to send their child to college in 14 years.
They
decide to deposit $270 each month in an account earning 5% per year compounded
monthly.
How much will be in this account in 14 years?
3.
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.
 Fall '10
 AbdelnourAhmedZaid
 Math, Time Value Of Money, Future Value, Harry, Jackie, Corrie

Click to edit the document details