Question

1a. Determine your monthly payment on a 20-year $130,000 mortgage loan at 6 7/8% interest. a...

1a.

Determine your monthly payment on a 20-year $130,000 mortgage loan at 6 7/8% interest.

a

$998.16
b

$990.79
c

$998.55
d

$933.93

1b.

You want to start a landscape business and estimate it will take $12,500 to get started. You currently have $1,500 and can deposit an additional $200 at the end of each month. If your savings plan will earn 4.5% compounded monthly, in how many months can you start your business?

a

23.80 months
b

48.85 months
c

4.47 months
d

13.22 months

1c.

You want to accumulate $32,000 in 15 years for your child’s education, and you can earn 5% compounded monthly. What amount must you deposit each month if the first of your deposits is made today?

a

$253.05
b

$252.00
c

$119.22

$119.72
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