Question

4-6 A man buys a ear for $18,000 with no money down. He pays for the car in 30 equal monthly pay- ments with interest at 12% per annum, compounded monthly. What is his monthly loan payment? 4-1 Rose recently graduated in engineering. Her employer will give her a raise of $6500 per year if she passes the FE exam (Fundamentals of Engineering). (a) Over a career of 45 years, what is the present worth of the raise ifthe interest rate is 4%? (b) What is the future worth at Year 452 (c) Incentive pay systems can create ethical dilem- mas in the workplace. Describe one each from the perspective of the employer and the employce. 4-30 A man wants to help provide a college education for A his young daughter. He can afford to invest $600lyr for the next 4 years, beginning on the girl's 4 birthday. He wishes to give his daughter $4000 on her 18th, 19th, 20th, and 21St birthdays, for a total of $16,000. Assuming 5% interest, what uniform annual investment will he have to make on the girl's 8th through 17th birthdays? Tameshia deposits $5500 in her retirement account every year. If her account pays an average of 6% interest and she makes 38 deposits before she retires, how much money can she withdraw in 20 equal payments beginning one year after her last deposit? Contributed by Paul R. McCright, University of South Florida 4-27 Jennifer Creek is saving up for a new car. She wants to finance no more than $10,000 of the $26,000 esti- mated price in two years. She deposits $5000 into a savings account now and will make moathly deposits for the next two years. If the savings account pays a nominal interest rate of 3% per year with monthly compounding, how much must she deposit each month? Contributed by Gillian Nicholls, Southeast Missouri State University 4-23

Answer 1