Homework Clinic

Social Science Clinic => Business => Topic started by: torybrooks on Jun 6, 2019

Title: A dealer sold a car to Kristy for $2000 down and monthly payments of $259.50 for 3.5 years, ...
Post by: torybrooks on Jun 6, 2019

Question 1

Silva is contemplating to buy a 20 year annuity paying $2500 at the end of each month. What amount will be required to purchase the annuity, if the annuity provides a return of 6.75% compounded annually?
◦ $600 000
◦ $334 000
◦ $567 436
◦ $47 246
◦ $37 037

Question 2

A dealer sold a car to Kristy for $2000 down and monthly payments of $259.50 for 3.5 years, including interest at 7.5% compounded annually. What was the selling price of the car?
◦ $12 899
◦ $11 600
◦ $6012.50
◦ $9600
◦ $10 899

Title: A dealer sold a car to Kristy for $2000 down and monthly payments of $259.50 for 3.5 years, ...
Post by: nyrave on Jun 6, 2019

Answer 1

$334 000

Answer 2

$11 600

Title: Re: A dealer sold a car to Kristy for $2000 down and monthly payments of $259.50 for 3.5 years, ...
Post by: micro jets on Jun 21, 2021

Thank you!