8. A computer retailer offers a payment plan at 6.5% annual interest, compounded monthly. Customers can pay for a gaming

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8 A Computer Retailer Offers A Payment Plan At 6 5 Annual Interest Compounded Monthly Customers Can Pay For A Gaming 1 (98.06 KiB) Viewed 38 times

8. A computer retailer offers a payment plan at 6.5% annual interest, compounded monthly. Customers can pay for a gaming system by monthly payments of $156.20 for 1 year. What is the cost of the gaming system for a customer paying cash at the time of purchase? a $1810.04 c. $1721.06 b. $1931.26 d. $2010.26 9. Which is the lump-sum amount needed to generate a retirement income of $45 000 per year for 15 years, assuming interest at 7% per year, compounded annually? a. $450 452.65 c. $409 856.13 b. $357 420.88 d. $644 514.51 10. Which is the lump-sum amount needed to generate a retirement income of $36 000 per year for 25 years, assuming interest at 9% per year, compounded annually? a. $326 773.44 c. $357 443.00 b. $349 438.02 d. $353 612.87 11. Olivia has 2 years to repay a $13 000 business loan at 7.5% per year, compounded monthly. What is her monthly payment? a. $549.88 c. $584.99 b. $548.99 d. $594.88 12. $600 is invested quarterly for 4 years into a fund that pays 3.5% per year, compounded quarterly. Which are the correct values for PMT, i, and n? a. $600, 0.0875, 16 c. $600, 0.0875, 16 b. $600, 0.008 75, 16 d. $2400, 0.008 75, 4 13. $200 is invested monthly for 20 years into a fund that pays 7% per year, compounded monthly. Which are the correct values for PMT, i, and n? a. $200, 0.0583, 240 c. $200, 0.005 83, 240 b. $200, 0.0035, 240 d. $2400, 0.005 83,20 14. A car dealer offers a sedan for 48 monthly payments of $565.43 at 8% interest, compounded monthly. What is the cost of the car for a customer paying cash at the time of purchase? a. $23 161.09 c. $23 143.29 b. $22 983.91 d. $23 159.31 15. $3800 is to be repaid in quarterly payments for 6 years with interest at 6.5% per year, compounded quarterly. Which are the correct values for PV, i, and n? a. $3800, 0.01625, 24 C. $3800, 0.0163, 24 b. $3800, 0.01083, 24 d. $3800, 0.065, 24 16. $10 000 is to be repaid in monthly payments for 4 years with interest at 12% per year, compounded monthly. Which are the correct values for PV, i, and n? a. $10 000, 0.012,48 c. $10 000, 0.03, 24