Question #1 <?xml:namespace prefix = o ns = \"urn:schemas-microsoft-com:office:o
ID: 2368278 • Letter: Q
Question
Question #1 <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /?>
One can buy a very nice refrigerator and deep freeze combined appliance for $3,300. Costs may differ to pay for it.
1- If one pays for a $3,300 Refrigerator with 9% simple interest loan with monthly payments over 5 years about what will those monthly payments be?
a. $44 ___
b. $55 ___
c. $69 ___
d. $80 ___
2- If one pays for a $3,300 Refrigerator with a 9% compound interest loan with monthly compounding and payments over 5 years about what will those monthly payments be?
a. $44 ___
b. $55 ___
c. $69 ___
d. $80 ___
3- If one saves for a $3,300 Refrigerator by putting money into an investment account that earns 9% interest compounded monthly with steady even monthly payments into the account, most nearly what amount of money will need to be set aside each month?
a. $44 ___
b. $55 ___
c. $69 ___
d. $80 ___
4- In 1968 the U.S. Minimum wage was $1.60/hr. Today it is $7.25/hr. If the 1968 minimum wage had grown at the 4.4% average range of inflation since 1968, what most nearly would be the minimum wage today?
a. $4.10 ___
b. $9.00 ___
c. $10.64 ___
d. $30.89 ___
Explanation / Answer
1.d 2.c 3.a 4.c