5. Planning for their child’s college education, David and Carol Roberts opened an account paying 6.36% compounded monthly. If ordinary annuity payments of $700.00 per month are to be paid out of the account for three years starting seven years from now, how much did the Roberts’ deposit?
6. A car was purchased for $5000.00 down and payments of $556.00 at the end of each month for 4 years. Interest is 4.8% compounded monthly. What was the purchase price of the car?
7. What payment is required at the end of each month for 3 years to repay a loan of $8000.00 at 6.4% compounded monthly?
8. Sue and Tom recently purchased a townhouse listed at $800,000.00 by paying 20% down and mortgaging the balance over 25 years through equal monthly payments at 3.6% compounded monthly. What was the size of the monthly payments?
9. Suppose $726.56 is deposited at the end of every six months into an account earning 6.45% compounded semi-annually. If the balance in the account four years after the last deposit is to be $31300.00, how many deposits are needed? (This question asks for ‘n’)
