# cpena2 - 2102 Homework Two Your homework is from the book...

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2102 Homework Two Your homework is from the book but modified (in red) so that you can use the tables. E11.15 Ashley just borrowed \$15,000. Her QUARTERLY payment for five years will be \$ 962.20 . What interest rate is Ashley paying? Hint : Solve for the factor. Then go hunting across the number of payments column for a factor that is very close to the amount you calculated. Check figure : 10% annual rate E11.16 David just borrowed \$23,226.93 at 12% annual rate . If he makes monthly payments of \$900 , how long will it take him to pay off this loan? Check figure : Two and a half years P11.7 Tara Storey can afford car payment of \$400 per month for FOUR years. The interest rate on card loans is 12% annual rate. A. How much can she spend for a car? B. How much can she spend for a car if her credit is lousy so she has to pay 18% annual rate? (what is the lesson here folks???) C. How would your answer to A change if she could make a \$2,000 down payment? D.
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## This note was uploaded on 03/23/2011 for the course ACCOUNTING 2102 taught by Professor Staff during the Spring '11 term at Georgia State University, Atlanta.

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