Question

I need to find the solutions using a BA 2 Plus financial calculator NOT through excel. 5 and 6 are not needed But 9 and 10 are very important.

Question 5 5 pts You are taking out a car loan and will make payments of $315 each month (beginning one month from today). for a total of 60 monthly payments. If the interest rate on the loan is 0.83% (the effective monthly rate on this loan), how much are you borrowing to buy the car? [Hint: Loan problems are typically PV annuity problems, where the amount you are borrowing is the PV of the series of future payments.] Do not round any intermediate work. Round your final answer to 2 decimal places (ex: if your answer is 12.345678 then you should enter 12.35). Margin of error for correct answers: +/- 03. Question 6 5 pts You will deposit $241 each year into an investment account that earns 9% interest (an APR, with interest compounded annually). Your first deposit will be exactly one year from today, and you'll make a total of 10 deposits. How much will be in your account 10 years from today? Do not round any intermediate work. Round your final answer to 2 decimal places (ex: if your answer is 12.345678 then you should enter 12.35). Margin of error for correct answers: +/- 03. Question 7 5 pts An investment offers $712 per year forever, with the first payment occurring today. If the interest rate is 6.9% (per year, with annual interest compounding), the value of the entire investment today is Do not round any intermediate work. Round your final answer to 2 decimal places (ex: if your answer is 12.345678 then you should enter 12.35). Margin of error for correct answers: +/-.05.

Answer 1

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The amount in account at the end of 5 years from today is calculated as below :

N = 5

I/Y = 7.2

PV = 0

PMT = -150

CPT -->> FV

FV is calculated to be $866.06

Now, we calculate the amount in account at the end of 5 years from today as below :

N = 1

I/Y = 7.2

PMT = 0

PV = -866.06

CPT -->> FV

FV is calculated to be $928.42

Amount to deposit in account in 6 years to meet goal = $1,000 - $928.42

Amount to deposit in account in 6 years to meet goal = $71.58