Question

# Dawn Chin plans to buy a new vehicle. Her current vehicle will bring 6,000 as a...

Dawn Chin plans to buy a new vehicle. Her current vehicle will bring 6,000 as a trade-in. She can pay another \$2,500 as a down payment. The vehicle she wants to buy costs \$23,700. What would be her monthly payments for a four-year loan at 4.55%?

Multiple Choice

• \$346.96

• \$345.64

• \$538.95

• \$540.98

Mark Moreno is buying a house. The house costs 350,000. He plans to put \$70,000 down and borrow the balance at 3.86% for a 30 year fixed rate mortgage. Calculate the principal plus interest portion of his mortgage payment.

Multiple Choice

• \$1,310.05

• \$1,637.56

• \$1642.83

• \$1314.26

You plan to have \$1,000,000 in your retirement account when you retire in 28 years. Assume an average annual rate of return of 9.8% compounded monthly. How much will you have to save at the end of each month?

Multiple Choice

• \$568.05

• \$563.45

• \$490.75

• \$495.04

Danielle Desportes plans to invest in a rental property worth \$280,000. She plans to hold the property for 4 years and expects to sell it for \$294,000 at the end of the fourth year. She estimates that the average monthly net income from the property will be \$3,250. Her target return is 8%. Calculate the net present value of the investment.

• \$346,840.87
• \$347,728.38
• \$66,728.38

You plan to have \$1,000,000 in your retirement account when you retire in 40 years. Assume an average annual rate of return of 10.5% compounded monthly. How much will you have to save at the beginning of each month?

Multiple Choice

• \$88.08

• \$88.86

• \$134.53

• S135.70

The above questions are solved and explained here under, and then correct option is given:

The questions are solved using excel formulas.

1) Calculation of Monthly payments

Principal amount (after down payment) = 15,200

Number of instalments = 12 * 4years = 48 instalments

Rate of ineterest (annual) =4.55%

Formula =pmt(Rate of ineterest/12,Number of instalments,Principal amount)

= \$346.96

Therefore, \$346.96 is the correct option.

2) Calculation of Principal plus inteerst portion using excel formula

Principal amount(after down payment) = 280,000

Rate of interest = 3.86%

Number of instalments = 360

Payment of monthly instalments using pmt formula =pmt(Rate of interest/12,Number of instalments,Principal amount)

=\$1314.26

Therefore, corrent option of monthly instalment is \$1314.26

As there is nothing specified which questions to be solved, the above questions are solved. Thanks!!!

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