Reference no: EM133048662

Questions -

Q1. A student has a desktop computer, but it will not be useful at UVM because he needs a laptop. He plans to start in two semesters, so he has 6 months left to raise money. He considers taking out $4,500 for his machine, while the new machine will cost $25, 500. How much should he save each month to get the money he needs, if he is paid a rate of 24% per annum compounded monthly, and the deposits are made at the end of the term?

Q2. A person wishes to receive $1000 at the end of each of the next 4 quarters. If the bank account pays 8% per annum compoundable quarterly, how much should the initial deposit be?

Q3. Mr. Gates borrowed $5,000 from the bank to repay in 16 monthly installments. If the interest rate is 1.5% per month, determine the amount to be paid each month.

Q4. The financial manager of a company wishes to accumulate $126,817 in a type of investment that pays 8.18% per annum with tetramestral capitalization. He needs to make deposits in equal amounts during 4 tetramesters. Find the amount of each deposit.

Q5. The foreign students need $1,975 each month for 5 months to meet their personal expenses. Their parents are wondering, how much will they have to deposit now so that they can make their withdrawals at the end of each month, if the bank offers them a monthly interest rate of 2.89%?

Q6. For the purchase of a car whose cost is $345,000, the following credit conditions are offered: 3-year term, interest rate of 10.5% per annum, capitalized monthly, down payment of 15%. Calculate the monthly payments to be made.