1. Sherry Smart is buying a $350000 home and will pay the mortgage monthly for 30 years. She has a good credit score and has qualified for a 5.125% loan interest. How much will she be paying monthly for the home?
2. Nukin’ Gnats Pest Control wants to offer a contract to its customers that would protect the property of their existing customers against termite infestation. Should termites invade a customer’s home, Nukin’ Gnats will pay for the repairs to the home provided the customer has maintained service with Nukin’ Gnats. The corporation must develop an account with a value of $500,000. They will accumulate this account for over three years, after which they will offer this new contract provision. How much must be deposited annually (rounded amount) to accumulate the needed funds if they can get 5% interest at their local bank?
3. Bill Swill decides to try his luck at Powerball where the projected winnings are $12,000,000. If he wins, he can choose the annuity option (to be paid over 20 years) or a lump sum settlement that he can invest at 8% interest. How much must the lump sum option be to make the lump sum option equal to the annuity option (rounded)?
4. Jenny Genius wants to purchase a new car. She knows that she can afford to pay $250 per month and that her bank will charge her 8% interest on the car loan. She intends to pay off the car in five years. Interest will be compounded monthly. Of the following, which is the most expensive vehicle in her price range that she could consider?
a. A Taurus selling for $11,900.
b. A Malibu selling for $12,320.
c. A Civic selling for $14,670.
d. A Celica selling for $17,500. Get Finance Assignment Help Today