Question

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203000 manthly peyment . We cas afford to make payments of $300 per month for our years. We can get a loan at an APe of4% How much money can we afford to borrow? Mailings Review View AaBbCcDdEe AaBbCcDdEe AaBbCcD AaBbCo Normal No Spacing Heading1 Headi d improvements, choose Check for Updates. 7. Suppose we invest $10,000 in a texear certificate of deposit that pays an apr of 6% a. find the value of the mature CD if interest is compounded annually. B. find the vaule of the mature cd if the interest is compounded quarterly? 8.You borrow $8000 at an apr of 9% to be paid off in monthly installments over four years. Calculate monthly payment. 9. We can afford to make payments of $300 per month for four years. We can get a loan at arn APR of 4%. How much money can we afford to borrow? Is

Answer 1

7) $10,000 invested for five years at 6% apr

a) value at end of 5 years when compounded annually:

10,000*(1+0.06)^5 = $13,382.26

b) value at end of 5 years when compounded quarterly:

10,000*(1+0.06/4)^5*4 = $13,468.55

8) Borrowed amount : $8,000

Apr 9% or 9/12% per month basis

Monthly installments for 4 years implies 48 payments

Using a financial calculator or excel function, we get monthly installments to be $199.08 for the mentioned schedule.

9) monthly payments amount $300

For 4 years, implying 48 payments

APR of 4%

Amount that be borrowed today: $13,286.65 (using financial calculator/excel function)