In order to purchase a home, a family borrows $114,000 at 2.5% for 30 yr. Find t
ID: 3141170 • Letter: I
Question
In order to purchase a home, a family borrows $114,000 at 2.5% for 30 yr. Find the monthly payment necessary to amortize the following loan. Round the their monthly payment to the nearest cent. $3923.94 $450.44 $237.53 $926.13 Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding is the same as the payment period. $44.000; monthly payments for 14 years; interest rate 8.8%. $132.76 $72.83 $397.53 $134.14 A summer camp wants to hire counselors and aides to fill its staffing needs at minimum cost. The average monthly salary of a counselor is $2400 and the average monthly salary of an aide is $1100. The camp can accommodate up to 45 staff members and needs at least 30 to run properly. They must have at least 10 aides, and may have up to 3 aides for every 2 counselors. How many counselors and how many aides should the camp hire to minimize cost? 18 counselors and 12 aides 27 counselors and 18 aides 12 counselors and 18 aides 35 counselors and 10 aides License plates are made using 3 letters followed by 3 digits. How many plates can be made if repetition of letters and digits is allowed? 308, 915, 776 175, 760 1,000,000 17, 576,000 1, 757, 600 How many ways can a committee of 4 be selected from a club with 12 members? 248 11, 880 495 24 Three cards are drawn without replacement from an ordinary deck. Find the probability that the third card is a heart, given that the first two cards 1/6 1/5 11/50Explanation / Answer
Solution:
Given that
Present value of house (PV) = $ 114,000
rate of interest = 2.5% = r= 0.025
time t = 30 Year
since payment is monthly therefore n = 12
Monthly payment can be caluculated using formula = (r/n) (PV) / ( 1- (1+r/n)-nt)
= ( 0.025/12) (114,000) / ( 1- (1+0.025/12)-12*30)
= $ 450.4378
= $ 450.44
Answer: (B) is correct : $ 450.44