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 HOMEWORK

1. Sarah wants to buy a house. She feels she can afford a monthly
mortgage payment of $1380.00 and no more. If she obtains a 30 year
mortgage at an interest rate of 4.5olo compounded e9l_l{V, how much can
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she borrow?

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2. How much is $800.00 invested at30Â compounded semi-annually for

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3. How much is $22,000.00 invested at 50Â compounded quarterly for 4 ./
yearsworth? ,ïr L=,to(,;0t0AI*\
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4. How much interest is earned on ?qgqlnl+lty where $700.00 is
deposited quarterly for 4 years and the account earns l0%o compounded
quarterly?_ t. 1,vu À 1 À = û::A ''ûPt'5
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5. Maû is buying a house for $340,000.00. A-ssuming he puts2QYo
down- tn
'down- his monthly
in çash, how much are lUg rnguftIy payments if his qortgagsrqte is
65% compounded monthly for 30 years? How muchpr€ htfpayn
ruchat'é_his qûÀ if the
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interest rate is 4Yo ? Whatlgrpens to hi S DAVMCNrts at Uoin of tnese rates if i y,
he borrows for 20 Years? QJt/ \ r"4,) s= rurffar*fi-, t
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6. S12-0q0.00 is invested in an account earning 8olo compounded ,i

@qk_t' How much will be in the account in 5 years and 2 months?
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7. What amount will be in an account after 3 years if $1500 is invested

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at 30Â aompounded quart erly? /\*a
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8.
A company establishes a sinking fund to replace equipment at an
estimated cost of S 100,000 in 9 years. How much should be invested
eachfirontli; into an account paying So/o*aompounded monthly in order
to have $1OO,OOO in 9 years?
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9. You have decided to bqy g new microcomputer for $2,500 and agreed
to pay in ?l9.gyul-ryonthli payments at 1.7 5 Yo interest per month on
the unpaid balance. Hqy much are youf payments? .) -f"
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10. You have purchased a new house and have amortgage for $290,0!0
at 90Â compounded monlhly The loan is amortized ovel_2! years,)
Find the total amount paid in interest when the mortgage is

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