Q1:Alice Cohen buys a two-year-old Honda from U-Pay-Less-Cars for $19,000. She puts$500 down and finances the rest through the dealer at 13% add-on interest. If she agrees to make thirty-six monthly payments, find the size of each payment? Q2: Jackson won $15,000 in a lottery. He wished to buy a car for about $20,000. Ifhis money can earn interest at 6% simple interest, for how long must he invest hismoney to buy the car? Q3: A man wants to invest $10,000 at 3.5% interest. How much he will have in hisaccount in 7 years and three months?

Q1:Alice Cohen buys a two-year-old Honda from U-Pay-Less-Cars for $19,000. She puts$500 down and finances the rest through the dealer at 13% add-on interest. If she agrees to make thirty-six monthly payments, find the size of each payment? Q2: Jackson won $15,000 in a lottery. He wished to buy a car for about $20,000. Ifhis money can earn interest at 6% simple interest, for how long must he invest hismoney to buy the car? Q3: A man wants to invest $10,000 at 3.5% interest. How much he will have in hisaccount in 7 years and three months?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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