Question

1. What monthly payment is required to amortize a loan of $50,000 over 14 years if interest at the rate of 6%/year is charged on the unpaid balance and interest calculations are made at the end of each month? (Round your answer to the nearest cent.)
$

2. The Flemings secured a bank loan of $368,000 to help finance the purchase of a house. The bank charges interest at a rate of 3%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each repayment if the loan is to be amortized at the end of the term? (Round your answer to the nearest cent.)
$

3. Jessica wants to accumulate $11,000 by the end of 4 years in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over the 4-year period. If the bank pays interest at the rate of 8% per year compounded monthly, how much does she have to deposit each month into her account? (Round your answer to the nearest cent.)
$

Answer 1

[ (1-(1/(1+rAn)))/r] 50,000 [((1-(1/(1.005^168))/0.005 ] $440.62 Monthly repayment =PMT = Loan