Use this information, buy a car for $14,000. You get a loan for 5 years with an
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Use this information, buy a car for $14,000. You get a loan for 5 years with an APR of 2.85% simple interest.
- How much will you pay total for the car?
- The loan is paid back in 60 (5*12) equal monthly payments. How much will you pay each month?
Use this information. You find an investment account which gains money at an APR of 7.25%, compounded monthly. You deposit $18,000 in the account.
- How much money will you have if you leave all of the money in the account for 20 years?
- You decide to withdraw $10,000 after 10 years, and then withdraw the rest of the money after another 10 years. How much money will you earn in this situation?
You have $1750 that you want to put in an account to save. You'd like to have $2500 in 5 years.
- If you deposit the money in an account which pays simple interest, what APR would you need to have $2500 in 5 years?
- If you deposit the money in an account which compounds monthly, what APR would you need to have $2500 in 5 years?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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