accounts data bank
61. Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a 360day year. How much would be in the account after 8 months, assuming each month has 30 days?
a. $5,178.09
b. $5,436.99
c. $5,708.84
d. $5,994.28
e. $6,294.00
62. Suppose you borrowed $12,000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be?
a. $3,704.02
b. $3,889.23
c. $4,083.69
d. $4,287.87
e. $4,502.26
63. Suppose you are buying your first condo for $145,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?
a. $741.57
b. $780.60
c. $821.69
d. $862.77
e. $905.91
64. Your uncle will sell you his bicycle shop for $250,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal endofmonth payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be?
a. $4,029.37
b. $4,241.44
c. $4,464.67
d. $4,699.66
e. $4,947.01
65. Suppose you borrowed $14,000 at a rate of 10.0% and must repay it in 5 equal installments at the end of each of the next 5 years. How much interest would you have to pay in the first year?
a. $1,200.33
b. $1,263.50
c. $1,330.00
d. $1,400.00
e. $1,470.00
66. You plan to borrow $35,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal endofyear payments. How much interest would you be paying in Year 2?
a. $1,994.49
b. $2,099.46
c. $2,209.96
d. $2,326.27
e. $2,442.59:
67. Your bank offers to lend you $100,000 at an 8.5% annual interest rate to start your new business. The terms require you to amortize the loan with 10 equal endofyear payments. How much interest would you be paying in Year 2?
a. $7,531
b. $7,927
c. $8,323
d. $8,740
e. $9,177
68. You are considering an investment in a Third World bank account that pays a nominal annual rate of 18%, compounded monthly. If you invest $5,000 at the beginning of each month, how many months would it take for your account to grow to $250,000? Round fractional months up.
a. 23
b. 27
c. 32
d. 38
e. 44
69. You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $150,000?
a. 39.60
b. 44.00
c. 48.40
d. 53.24
e. 58.57
70. Your child’s orthodontist offers you two alternative payment plans. The first plan requires a $4,000 immediate upfront payment. The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan?
a. 12.31%
b. 12.96%
c. 13.64%
d. 14.36%
e. 15.08%

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