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Homework 3 (1)

Homework 3 (1) - Homework 3 Effective and Nominal Interest...

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Homework 3 Effective and Nominal Interest 1. I finance a car under the following terms: Purchase Price: \$32,750 Interest Rate: 5.52% APR compounded monthly Term: 7 years Required Down Payment: 8.00% What is the monthly payment? 2. In 1. above, what is the monthly payment if the interest rate is 5.52% APR compounded quarterly? 3. What nominal interest rate (APR) compounded monthly will grow an initial deposit of \$1,800 to \$225,000 in 36 years if I then make semiannual deposits of \$425.00 ? 4. I make an initial deposit of \$5,200 followed by withdrawals of \$35.00 per month. If the nominal APR is 9.25% compounded semi-annually, What is my balance in 41 years? 5. In 4. above, what is my balance in 41 years if instead I withdraw \$45.00 per month ?

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6. I borrow \$62,500 at an interest rate of 5.41% APR compounded continuously with monthly payments of \$725.00 3.25 years from now I re-finance the remaining balance @ 5.02% APR compounded quarterly with the same monthly payments. How long would it take from the original loan date (months)
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Homework 3 (1) - Homework 3 Effective and Nominal Interest...

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