University:
Glendale Community College
Course:
MAT142 | College Mathematics
Academic year:

2020
Views:

261

Pages:

1
Author:

Choncholq4

Grima MAT 142 – Chapter 3 extra practice problems part 2 1) A new car is purchased and a $40,000 loan is taken. The loan is for 6 years (72 months) and the interest rate is 3.9% compounded monthly. a) What is the monthly payment? b) What is the balance after 3 years? c) How much interest will be paid over the term of the loan? 2) A new car is purchased and a $20,000 loan is taken. The loan is for 4 years (48 months) and the interest rate is 7% compounded monthly. a) What is the monthly payment? b) What is the balance after 1 year? c) How much interest will be paid over the term of the loan? 3) Kris can afford $300 per month for a car payment. What size of a car loan can she take if he plans to finance at 6 years (72 months) at an interest rate of 5% compounded monthly? 4) Kris can afford $400 per month for a car payment. What size of a car loan can she take if he plans to finance at 5 years (60 months) at an interest rate of 7.5% compounded monthly? 5) $100 is deposited in a retirement account every two weeks. The account already has a balance of $5,000. The investment is estimated to earn 8% interest compounded every two weeks. Compute the balance of the account after 25 years. 6) $200 is deposited in a retirement account twice a month. The account already has a balance of $18,000. The investment is estimated to earn 7% interest compounded twice a month. Compute the balance of the account after 40 years. 1a) N = 72 I = 3.9 PV = 40000 PMT = Solve FV = 0 P/Y = 12 C?Y = 12 Answer $623.99 1b) Bal(36) = $21,166.78 1c) ∑(1,72)$4927.02 2a) N = 48 I = 7 PV = 20000 PMT = Solve FV = 0 P/Y = 12 C?Y = 12 Answer $478.92 1b) Bal(12) = $15,510.68 1c) ∑(1,48)$2,988.39 3) N = 72 I = 5 PV = Solve PMT = -300 FV = 0 P/Y = 12 C/Y = 12 Answer: $18,627.83 4) N = 60 I = 7.5 PV = Solve PMT = -400 FV = 0 P/Y = 12 C/Y = 12 Answer: $19,962.12 5) N = 25*26 = 650 I = 8 PV = -5000 PMT = -100 FV = Solve P/Y = 26 C/Y = 26 Answer $243,40.07 6) N = 40*24 = 960 I = 7 PV = -18000 PMT = -200 FV = Solve P/Y = 24 C/Y = 24 Answer $1,349,275.03