Question

if you could put the equation so i can learn and understand. ty

Sample Midterm Exam Name Each question is worth 5 points for 11) You are saving money to interest rate of 6% (APR), how muc A) $23,478.46 11 rth points for a maximum total grade of 100 points. buy a car. If you save $310 per month starting one month from now at an "R), how much will you be able to spend on the car after saving for 4 years? B) $16,770.33 C) $10,062.20 D) $20,124.40 12) If the current rate of interest is 7% year and lasts 18 years is closest to A) $24.479 B) $57,119 interest is 7%, then the future value (FV) of an investment that pays $1200 per 12) C) $48,959 D) $40,799 13) A(n) 12% APR with monthly compounding is closest to A) an EAR of 25.36% C) an EAR of 10.14% B) an EAR of 15.22% D) an EAR of 12.68% 14) A bank pays interest semiannually with an Pays interest semiannually with an period not APR) applicable semiannually? A) 7.56% B) 5,04% AR of 13% What is the periodic interest rate (rate per 14 C) 6.30% D) 12.60% 13 You are borrowing money to buy a car. If you can make payments of $300 per month starting one month from now at an interest rate of 4% APR, how much will you be able to borrow for the car today if you finance the amount over four years? A) $6,358.54 B) S15,587.88 C) $13,067.62 D) $13,286.65

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet .
Answer 2 3 Part 11) 4 The correct answer is B) $ 16770.33 5 6 Future Value = monthly saving future value annuity ((4*12),6%) 7 = monthly saving * (((1+i)n-1)/i) 8 = 310*(((1.005)-48-1)/.005) 9 = 310* 54.09783 10 = $ 16770.33 11 12 Part 12) 13 The correct answer is D) $ 40799 14 15 Future value = amount * future value annuity(18,7%) 16 = amount *(((1+i)an-1)/i) 17 = 1200*(((1.07)^18-1)/.07) 18 = 1200*33.99903 19 = $ 40799 20 21 Part 13) 22 The correct answer D) an EAR of 12.68% 23 24 Effective annual rate = (1+i/12))-12-1 25 = (1+.12/12))^12-1 26 = 1268 27 or = 12.68 %

29 Part 14) 30 The correct answer is C) 6.3 % 32 Effective annual rate = (1+i))^2-1 33 13 = (1+i)^2-1 34 1.13 = (1+i)^2 35 1 = 6.3% 36 37 Part 15) 38 The correct answer D) $ 13286.65 39 40 Present value = monthly payment present value annuity ((4%/12).(12*4)) 41 = monthly Payment * ((1-(1+i)-n)/i) 42 = $ 300*((1-(1.00333)^-48)/.00333) 43 = 300* 44.28883 44 = $ 13286.65