Quiz 3 Key - Spring 2008 - Finite Mathematics Quiz #3...

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Unformatted text preview: Finite Mathematics Quiz #3 Friday, February 22, 2008 Name Sections 6.1 7 6.3 Make sure you show all your work on this paper. Solutions without correct supporting work will not be accepted. 1. Eduardo is a 40-year-old individual who plans to retire at age 65. Between now and then, $2000 is paid semiannually into his IRA account, which is anticipated to pay 5% compounded semiannually. How much will be in the account upon Eduardo’s retirement? (5 points) { : 2; 7w _ H organs)” I {)2 432000 A: 2000 [( :3;— 2. Katy wants to have enough in her retirement accounts so that, upon retirement, she can withdraw $500 each month for the next 35 years. Assuming that her accounts will earn an average of 7% compounded monthly, what sum of money should she have in her accounts upon retirement? (5 points) p... 500 mane—7.1V“) .93, ' I‘L 3. What is the interest rate Sally needs to find if she wants to put $1000 in an account and let it accumulate to $3000 in ten years if she knows interest will be compounded quarterly? (5 points) “ 400) 3000: (00004—7?) ’5 :— (I +33% LOOK ON THE'BACK 4. The Bigger Wage Boat Co. sells George a new fishing boat for $9200. The company agrees to finance 80% of the purchase at 8.5% simple interest, computed on the unpaid monthly balance, for a period of 6 years. a. What is the amount of each of George’s monthly payments? (4 points) , {zomlocfl : $73M) .. (4935’- KWOD a, a ’" 12. , b. Assuming timely payments of the amount found in part (a), what is the unpaid balance of the loan after 4 years? (4 points) a W W .035 -lZ(7—) (P: l30.85[ “(14:0ng j r; 0. Assuming timely payments and that George takes the entire 6 years to pay off the loan, how much interested did he pay? (2 points) ...
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This note was uploaded on 01/12/2012 for the course MATH 2053 taught by Professor Pamelasatterfield during the Spring '08 term at NorthWest Arkansas Community College.

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Quiz 3 Key - Spring 2008 - Finite Mathematics Quiz #3...

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