Unformatted text preview: Suppose you make a 5% down payment and get a loan for the remainder. The loan is at 6.2% annual interest compounded monthly for 6 years. A) What is the down payment required and how much must be borrowed? B) What will be the monthly payment? C) What is the total amount of money repaid in payments over the 6 years? D) How much of the total repaid in part C will have been interest? E) If they paid an extra $50 per month how long would it take them to pay off the loan? 4. Suppose a couple plans to start a savings plan for their daughter's college. They will deposit 100 monthly for 10 years into an account that has an 8% interest rate compounded monthly. At the end of the ten -year period, they take that money and put it into an account earning compound interest at 5%, compounded monthly, for 8 years. How much money will the couple have at the end of the 18 years?...
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This note was uploaded on 10/18/2011 for the course MGF 1107 taught by Professor Jameslang during the Fall '11 term at Valencia.
- Fall '11