test question 9:

a.

1. Ryan must pay off a loan of $3,500 in 5 years. Use the appropriate formula to find the amortization payment he would need to make each six months, at 12% interest compounded semiannually.

   $475.54

   $970.93

   $195.69

   $394.89

2. b. Second Hand Software needs to accumulate $12,000 in 3 years to meet future needs. What sinking fund payment would they need to make at the end of each year, at 6% interest compounded annually?

3. $4,110.34

   $3,769.32

   $4,392.65

   $4,634.15

4. c.

   Use the appropriate formula to find the amortization payment you would need to make each three months, at 8% interest compounded quarterly, to pay off a loan of $8,000 in 6 years.

   $1,730.52

   $422.97

   $1,288.29

   $316.61

5. d. Use the appropriate formula to find the amortization payment you would need to make each three months, at 8% interest compounded quarterly, to pay off a loan of $8,000 in 6 years.

6. $1,730.52

7. $422.97

   $1,288.29

   $316.61

8. e.

   Your bank pays 9% interest, compounded annually. Use the appropriate formula to find how much you should deposit now to yield an annuity payment of $800 at the END of each year, for 10 years.

   5,134.13

   $6,099.86

   $5,596.20

   $6,454.28