1. Stephanie is going to buy a car that costs $30,000. If she makes $650 a month payments for 48 months at 5.9% interest, how much was her down payment?

 

2. Fred is paying off a $24,000 loan over 4 years with $580 a month payments. If he will pay the entire loan off in that time, what is the interest rate?

 

3. How long will it take Gabriella to save $250,000 if she puts $475 a month into an annuity drawing 7.5% interest?

 

4. BCD Corporation is going to place $100,000 into an annuity. Then, it is going to add $25,000 a quarter to the annuity for the next 15 years. If the annuity draws 9% interest, how much will it be worth at the end of the time?

 

5. Karen decides to put the child-support payments from her previous husband into an annuity for the education of her two children. At the end of each month for 8 years, she puts $300 into a mutual fund that has yielded 9% compounded monthly. Find the amount of the annuity.

Answer rating: 100% (QA)

Solution 1 To find the down payment we need to calculate the total amount financed which is the cost of the car minus the down payment The total amount financed is 30000 X where X is the down payment ... View the full answer