Note :

In a General Annuity the interest period does not match the payment period.

That means that each question requires a two-step solution

Step 1 - find the equivalent interest rate to match the payment period. Do not round this interest rate

Step 2 - use the appropriate formula, Sn or An.

If you do not recognize the general annuity and skip Step 1, you will score 0% on Test 4.

A car was purchased for

$2950

down and payments of

$221

at the end of each

month

for

three

years. Interest is

2%

compounded

annually.

What was the purchase price of the car? How much interest will be paid?

Question content area bottom

Part 1

The purchase price of the car was

$enter your response here.

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Part 2

The amount of interest that will be paid is

$enter your response here.

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)