Math 1630 Practice Problems Name - Chapter 5 SetD Date _ In the following problems show both the formula work and fill in the TVM solver window. Circle your solution. 1. Julia wants to buy a new car. Her old car is worth $5000 as a trade-in, and she can afford monthly payments of $300, If she finances the car over a 6 year period at 5.99% compounded monthly, what is the total amount that she Yoo much can she finance l= Lt 2sttfi2) 72) ) 300 [OOH ] = BE /27, 01 Trtal she can whherd = fisperal +500 (B23, Jone! 2. A speculator agrees to pay $15,000 for an acre of land. He will pay this amount, with interest, over a 4-year period, making two payments per year at an interest rate of 10%, ee arian ws Find the amount of each ayment that he must make. Lee Fe /5,000, (= 41/2 Ps RL 123-428 . = Ut l/a-F [5,000 = p [skiing ef 3. George and Debbi Ashton purchase a house for $190,000. After paying 20% as a down payment, they finance the balance through Suntrust Bank by obtaining a 30 year fixed rate mortgage of 7.38% (compounded monthly). a. Determine the size of the down payment. ’. Determine the amount financed. C199.200)(,2) = £35000 /90.200-33, 000 = # [52,000 c. Determine the monthly payments needed to amortize, the loan, A=: : 0 2360 P=/52,060, WB} oz 58,000 =F, ee pests /§2, 000 ae Lb: PH aie BEGIN Find the total int 7) that George and ee ge on schedule, (360)(050.3Y) = 152,000 = (Bie, 722.40 e. Determine the we bbafance on the mortgage after 10years# /3, 57734, ISyearsp//f HAZE 20years BH 403 4, Irene deposits $200 each month into a retirement account earning 6.5% interest compounded monthly for 30 years. ‘Then she retires and withdraws equal monthly payments from the account for 25 years, at which time the account balance is $0, What monthly payment will Irene receive for the last 25 years? S21, R20 (2 065//2, 0 = 12130 = 360 p= 200 leeagssye ee =I) 7] a $29 a35.62Z5. Steve starts his career at the compounded monthly. He plan: age of 25, and makes equal monthly deposits into an annuity that earns 6.25% son retiring at age 60, and would like 1o withdraw $3000 monthly for 25 year Px b22235.67, R=F iz wisye NZL 2S = ZOO0 per £- L=te6)"”] [Ga C1t 065/12) 2A, 235.6% RE C 065 72) QE 2SF.CU 2 [Yh /OZOP7C 320, ‘] " bringing the account balance to $0. How much should Mike deposit monthly to accumulate enough to provide him ce PMT sue BEGIN Pt s 823099 C= 0625/2, n=12:- 25-300 rv- ee 01572)" )] P= 3000]- eG _t p= aes 1% 773,27 Se SHE 77321 &. 07, Pa? 06252, 1 = 12352490 goyzes27 = f (Mega 12] 454, 77327 = 1507.59 R cist 7. An ordinary annuity that eams 7.5% compounded monthly has a current balance of $500000. The owner of the account is about to retire and must decide how much to withdraw from the account each month, Determine how long, in years and months, that payments can be made under each of the following options before the money runs out. ONLY USE THE TVM SOLVER FOR THIS ONE! a, $5000 monthl\ ce 2 PMT =a BEGIN Crs/Z PMT slat BEGIN é BATE leat BEGIN b, IST 923 mouths ever mercy will a 243, 78/ month: : tun eu8. A $3000 computer can be financed by paying $100 per month for 3 years. What is the interest rate compounded WN monthly for this loan? TVM SOLVER ONLY... rf = 12.247 Jo 9, Large delivery trucks cost $98,000 each. Ace Trucking buys such a truck, and agrees to pay for it with a loan that will be amortized with 8 semiannual payments at 10% compounded semiannually. Fill out the amortization schedule for this loan, Payment Number | Amount of Payment | Interest for Period Reduche ocaosis ea 0 $98,000 5102.74 | Soe? | 19 202.74 | “9g 73226 2 (G1G2.7F 4,356.86| 10,7759 | 7, 001.38 3 (5, /02.74 | 3898.07 | 1434.67 | 65,6%-7/ 4 15,162.74 | 3282-34| 1/$9O,40| 53,766.3/ 5 [EMG27Y | CBG32Z | 1QYTYIL, 424,97 7 15, 142.7Y | 2064.59 | 13,098.15 | 219379 7 25, 102.79\ (907.67 1B, 753.05 bp YL? 8 15,162:72| 74},03 14,990.69 0 touts (2, 3070 f A3,301.70| BIL COO | mm ee ame PG00 = ¢, 4032/2757 RK hed) = x