A commercial bank will loan you $7,500 for two years to buy a car. The loan must be repaid in 24 equal monthly payments. The annual interest rate on the loan is 12% of the unpaid balance. What is the amount of the monthly payments?
A) $282.43
B) $390.52
C) $369.82
D) $353.05
You wish to borrow $2,000 to be repaid in 12 monthly installments of $189.12. The annual interest rate is
A) 24%.
B) 8%.
C) 18%.
D) 12%.
If you have $20,000 in an account earning 8% annually, what constant amount could you withdraw each year and have nothing remaining at the end of five years?
A) $3,525.62
B) $5,008.76
C) $3,408.88
D) $2,465.78
If you invest $750 every six months at 8% compounded semi-annually, how much would you accumulate at the end of 10 years?
A) $10,065
B) $10,193
C) $22,334
D) $21,731
Your company has received a $50,000 loan from an industrial finance company. The annual payments are $6,202.70. If the company is paying 9% interest per year, how many loan payments must the company make?
A) 15
B) 13
C) 12
D) 19
________ annuities involve depositing money at the end of the period and allowing it to grow.
A) Discount
B) Compound
C) Annuity due
D) Both B and C
