Math 1313
Homework 12
Section 5.3
Use the following problem to answer questions 1 – 3.
Candy purchases a new guitar costing $3,700.
She put down 15% and finance the rest for
2 years through the store.
The store will charge her 12% per year compounded monthly.
What are her monthly payments?
1.
Identify the type of problem.
a.
Present Value with compound interest
b.
Future Value of an Annuity
c.
Present Value of an Annuity
d.
Amortization
e.
Sinking Fund
f.
None of the above.
2.
What is the amount of the down payment?
a.
$444
b.
$555
c.
$277.5
d.
$222
e.
$1,100
f.
None of the above.
3.
Answer the question in the problem.
a.
$239.00
b.
$174.17
c.
$137.17
d.
$116.60
e.
$148.05
f.
None of the above.
Use the following problem to answer questions 4 and 5.
A company would like to have $280,000 in 4 years.
How much should be invested
semiannually into an account paying 7.46% compounded semiannually?
4.
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 Fall '10
 AbdelnourAhmedZaid
 Math, Time Value Of Money, Mathematical finance, Basic financial concepts, e. Sinking Fund

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