0.9 Mathematics of finance: homework  (Page 6/7)

The Gill family is buying a $250,000 house with a 10% down payment. If the loan is financed over a 30 year period at an interest rate of 9.8%, what is the monthly payment?

Find the monthly payment for the house in the above problem if the loan was amortized over 15 years.

You look at your budget and decide that you can afford $250 per month for a car. What is the maximum amount you can afford to pay for the car if the interest rate is 8.6% and you want to finance the loan over 5 years?

Mr. Nakahama bought his house in 1980. He had his loan financed for 30 years at an interest rate of 11.2% resulting in a monthly payment of $1500. In 1997, 17 years later, he paid off the balance of the loan. How much did he pay?

Lisa buys a car for $16,500, and receives $2400 for her old car as a trade-in value. Find the monthly payment for the balance if the loan is amortized over 5 years at 8.5%.

A car is sold for $3000 cash down and $400 per month for the next 4 years. Find the cash value of the car today if the money is worth 8.3% compounded monthly.

An amount of $2300 is borrowed for 7 months at a simple interest rate of 16%. Find the discount and the proceeds.

Marcus has won a lottery paying him $5000 per month for the next 25 years. He'd rather have the whole amount in one lump sum today. If the current interest rate is 7.3%, how much money can he hope to get?

In 1970, an average house in Cupertino cost $41,000. If the average inflation rate for the past years has been about 9.3%, what is the price of that house in 1997?

Find the 'fair market' value of a ten-year $1000 bond which pays $30 every six months if the current interest rate is 7%. What if the current interest rate is 5%?

A Visa credit card company has a finance charge of 1.5% per month ( or 18% per year) on the outstanding balance. John owed $3200 and has been delinquent for 5 months. How much total does he owe, now?

You want to purchase a home for $200,000 with a 30-year mortgage at 9.24% interest. Find a) the monthly payment and b) the balance owed after 20 years.

When Jose bought his car, he amortized his loan over 6 years at a rate of 9.2%, and his monthly payment came out to be $350 per month. He has been making these payments for the past 40 months and now wants to pay off the remaining balance. How much does he owe?

A lottery pays $10,000 per month for the next 20 years. If the interest rate is 7.8%, find both its present and future values.

A corporation estimates it will need $300,000 in 8 years to replace its existing machinery. How much should it deposit each quarter in a sinking fund earning 8.4% compounded quarterly to meet this obligation?

Our national debt in 1992 was about $4 trillion. If the annual interest rate was 7% then, what was the daily interest on the national debt?

A business must raise $400,000 in 10 years. What should be the size of the owners' monthly payments to a sinking fund paying 6.5% compounded monthly?