QUIZ 4

# QUIZ 4 - Question 1 2 out of 2 points Eric borrowed 663...

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Question 1 2 out of 2 points Eric borrowed 663 dollars today and has agreed to pay back in equal monthly installments over 3 years. The bank charges Eric 9.81% per year, compounded monthly. What is the amount that Eric will owe the bank at the end of month 20 (that is, after the 20-th installment has been paid)? (Accuracy is set at the second decimal.) Answer Selected Answer: 318.74 Correct Answer: 318.75 ± 0.05 Question 2 2 out of 2 points Eric borrowed 762 dollars today and has agreed to pay back in 52 equal weekly installments per year over 5 years. The bank charges Eric 10.84% per year, compounded daily. What is the amount that Eric will owe the bank at the end of week 69? Assume there are 365 days in one year. (Accuracy is set at the second decimal.) Answer

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Selected Answer: 598.16 Correct Answer: 598.15 ± 0.05 Response Feedback: See notes. Question 3 2 out of 2 points 5. Eric borrowed 665 dollars today and has agreed to pay back in 52 equal weekly installments per year over 6 years. The bank charges Eric 8.03% per year, compounded daily. What is the amount of interest that Eric will pay the bank in week 90? Assume there are 365 days in one year. (Accuracy is set at the third decimal.) Answer Selected Answer: 0.783 Correct Answer: 0.783 ± 0.005
Response Feedback: See notes. Question 4 0 out of 2 points 6. Eric borrowed 577 dollars today and has agreed to pay back in 52 equal weekly installments per year over 6 years. The bank charges Eric 5.87% per year, compounded daily. By what amount has Eric reduced the amount he owes the bank at the end of week 98? Assume there are 365 days in one year. (Accuracy is set at the second decimal.)

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## This note was uploaded on 09/24/2011 for the course ECN 801 taught by Professor Bardis during the Winter '11 term at Ryerson.

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QUIZ 4 - Question 1 2 out of 2 points Eric borrowed 663...

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