Copyright © 2008, The McGraw-Hill Companies, Inc.
Find a ___ 360 | (^) 0.00725.
For each of Exercises 13 to 17:
a) Find n.
b) Find i (expressed as either a fraction or a decimal).
c) Find the value of a _n (^) | (^) i.
d) Find the present value of the annuity.
The monthly payment is $150, the interest rate is 9%, and the term is 10 years.
The monthly payment is $184.39, the interest rate is 6^1 / 4 %, and the term is 15 years.
The quarterly payment is $1,750.42, the interest rate is 5%, and the term is 5 years.
The weekly payment is $37.45, the interest rate is 11.74%, and the term is 25 years.
The monthly payment is $735.35, the interest rate is 12.59%, and the term is 7 years.
D. Present Values and Loans- I’ve fi gured out that the most I can afford to pay each month for a car loan is $250.00. My credit union will make me
a 3-year used car loan with an interest rate of 8.4%. What is the most I can afford to borrow? - A replacement window company ran a newspaper ad stating that an average homeowner could replace all windows
and pay nothing down and just $165 a month. The fi ne print said that this payment is based on a 10-year loan and
a 7.8% interest rate. What total cost is the window company assuming for the windows? - Emilio’s accountant told him that if he continues to pay $50 a month on his credit card, it will take him 42 years to pay
off his current balance (assuming the interest rate doesn’t change and assuming he doesn’t charge anything else on
that card). His credit card interest rate is 18.99%. What is his balance? - Geoff borrowed $23,990 for 7 years at 9.3% to buy a boat. How much is his monthly payment?
- Warren bought a new house for $175,300. He made a $20,000 down payment, and fi nanced the rest with a 30-year
loan at an interest rate of 7.52%. What will his monthly mortgage payment be? - Find the monthly payment on a $17,500 loan if the term is 7 years and the interest rate is 11^1 / 4 %.
E. Other Applications of Present Value- Gord is looking forward to retiring in a few years, and hopes that he will have enough in his retirement savings account
to provide him with an income of $2,400 a month for 30 years. How much will he need in his account when he retires
to do this, assuming that it will earn 4%?
Exercises 4.4 179