Exam 5: Interest Rates

Use the information for the question(s)below. Two years ago,you purchased a new SUV.You financed your SUV for 60 months (with payments made at the end of the month)with a loan at 5.9% APR.You monthly payments are $617.16 and you have just made your 24th monthly payment on your SUV. -The amount of your original loan is closest to:

You are offered an investment that pays 8% APR compounded continuously.The effective annual rate for this investment is closest to:

Which of the following formulas is INCORRECT?

Use the following information to answer the question(s)below. Dagny Taggart has just purchased a home and taken out a $400,000 mortgage.The mortgage has a 30-year term with monthly payments and has an APR of 5.4%. -The total amount of principal that Dagny will pay during the first month of her mortgage is closest to:

Which of the following statements is FALSE?

Use the table for the question(s)below. Consider the following investment alternatives: -Which alternative offers you the lowest effective rate of return?

You are offered an investment that offers an effective annual rate of 8%.If this investment offers continuous compounding,then the APR for this investment is closest to:

Use the following information to answer the question(s)below. Dagny Taggart has just purchased a home and taken out a $400,000 mortgage.The mortgage has a 30-year term with monthly payments and has an APR of 5.4%. -Dagny's monthly payments are closest to: