Math 1332 — Quantitative Reasoning Brazosport College — Spring 2020 Take Home Quiz: Complete all work on separate paper and submit your work online in the drop box.
Suppose you deposit $8,000 into an account paying 4% interest compounded quarterly. How much will be in the account in 10 years? How much interest was earned? 2. Due to unexpected house repairs, you decide to take out a personal loan in the amount of $1500. The loan charges 34.5% annual interest, using the add-on method. The credit company also charges a fee of $250 in addition to the interest to use their services. Calculate the total amount you’ll pay back. If you are required to pay off the debt in I year, making 12 monthly payments, how much are you required to pay per month? How much did you pay in interest and fees?
3. To save for your child’s college education, you decide to make regular payments into a sinking fund, paying 5.5% interest, compounded monthly. If you would like to end up with $32,000 in 17 years, how much should you deposit into the account each month?
4. To support a comfortable requirement, you decide to save $175 per month, from age 30 to age 65. To help grow your savings, you invent this money into an investment annuity paying an average of 6.25% interest, compounded monthly. How much will you have in your account upon retirement at age 65? How much interest did you earn?
5. Suppose you bought a new Chevy for $23,500. You received $5000 for your old car in trade, and you made a down payment of $1500 towards the new car. If you finance the balance at an interest rate of 7.5%, compounded monthly for 5 years, determine the monthly payment you will have. Calculate the total amount you’ll have to pay in the 5 years? How much total interest did you pay? 6. In addition to the Chevy you bought in problem 5, you also want to purchase a motorcycle to go with it. Your monthly budget allows for an additional monthly payment of $300. If you finance the motorcycle at an interest rate of 4.5%, compounded monthly, find the price of the motorcycle you can afford.
