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Question;61. Suppose;you deposited $5,000 in a bank account that pays 5.25% with daily compounding;based on a 360-day year. How much would;be in the account after 8 months, assuming each month has 30 days?;a. $5,178.09;b. $5,436.99;c. $5,708.84;d. $5,994.28;e. $6,294.00;62. Suppose you borrowed $12,000 at a rate of 9.0% and must repay;it in 4 equal installments at the end of each of the next 4 years. How large would your payments be?;a. $3,704.02;b. $3,889.23;c. $4,083.69;d. $4,287.87;e. $4,502.26;63. Suppose you are buying your first condo for $145,000, and;you will make a $15,000 down payment.;You have arranged to finance the remainder with a 30-year, monthly;payment, amortized mortgage at a 6.5% nominal interest rate, with the first;payment due in one month. What will your;monthly payments be?;a. $741.57;b. $780.60;c. $821.69;d. $862.77;e. $905.91;64. Your uncle will sell you his bicycle shop for $250,000;with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to;make 12 equal end-of-month payments per year for 4 years, and then make an;additional final (balloon) payment of $50,000 at the end of the last;month. What would your equal monthly;payments be?;a. $4,029.37;b. $4,241.44;c. $4,464.67;d. $4,699.66;e. $4,947.01;65. Suppose you borrowed $14,000 at a rate of 10.0% and must;repay it in 5 equal installments at the end of each of the next 5 years. How much interest would you have to pay in;the first year?;a. $1,200.33;b. $1,263.50;c. $1,330.00;d. $1,400.00;e. $1,470.00;66. You plan to borrow $35,000 at a 7.5% annual interest;rate. The terms require you to amortize;the loan with 7 equal end-of-year payments.;How much interest would you be paying in Year 2?;a. $1,994.49;b. $2,099.46;c. $2,209.96;d. $2,326.27;e. $2,442.59;67. Your bank offers to lend you $100,000;at an 8.5% annual interest rate to start your new business. The terms require you to amortize the loan;with 10 equal end-of-year payments. How;much interest would you be paying in Year 2?;a. $7,531;b. $7,927;c. $8,323;d. $8,740;e. $9,177;68. You are considering an investment in a Third World bank;account that pays a nominal annual rate of 18%, compounded monthly. If you invest $5,000 at the beginning;of each month, how many months would it take for your account to grow to;$250,000? Round fractional months up.;a. 23;b. 27;c. 32;d. 38;e. 44;69. You are considering investing in a bank account that pays a;nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of;each month, how many months will it take for your account to grow to $150,000?;a. 39.60;b. 44.00;c. 48.40;d. 53.24;e. 58.57;70. Your child?s orthodontist offers you two alternative;payment plans. The first plan requires a;$4,000 immediate up-front payment. The;second plan requires you to make monthly payments of $137.41, payable at the end;of each month for 3 years. What nominal;annual interest rate is built into the monthly payment plan?;a. 12.31%;b. 12.96%;c. 13.64%;d. 14.36%;e. 15.08%

Paper#44743 | Written in 18-Jul-2015

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