Math Problem Statement

Question number 2.

Congratulations! You were the 10th caller on the KMTH morning show and you just won $ 3,000.00. After you calm down, you decide to put the money into a bank account so that you will have even more money for a trip to Europe. Snurling Bank tells you that they will pay 8% per year compounded monthly. How much money will you have for your trip in 10 years? $ 6,659.92

$ 6,662.92

$ 6,660.92

$ 6,658.92

$ 6,661.92

None of the above.

Question number 3.

Jennifer bought a brand new treadmill on a credit plan at BeFit Exercise Equipment. BeFit will charge her 17% per year compounded monthly. If her monthly payments will be $ 100 for 4 years, how much was the original price of the treadmill? $ 3,467.60

$ 3,465.60

$ 3,469.60

$ 3,468.60

$ 3,466.60

None of the above.

Question number 4.

A problem is listed below. Identify its type.

The Jimenez family purchased a new home. To fully furnish their new home, they took a loan from their credit union that charges 10% per year compounded monthly . The loan amount was $ 20,000. They wish to pay off this loan in 3 years. How much is their monthly payments? Amortization

Present Value with compound interest

Present Value of an Annuity

Sinking Fund

Future Value with compound interest

None of the above.

Solution

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Math Problem Analysis

Mathematical Concepts

Finance
Compound Interest

Formulas

FV = P(1 + r/n)^(nt)

Theorems

Future Value Theorem

Suitable Grade Level

Grades 10-12