mathematics question 433

Question #1 – Simple Interest

Jason needed to borrow $4,000 to pay for plane tickets to Europe. His bank offered him a simple interest loan with an 8% annual interest rate and a 24-month term. Jason does not want to pay any more interest than he must so he checked with his credit union and found they would offer him the same loan amount with 6% simple interest on a 3-year loan. Jason’s loan at both institutions was structured as an installment loan.

  • Calculate the finance charge (interest), the total installment price, and the monthly payment for the bank loan.
  • Calculate the finance charge (interest), the total installment price, and the monthly payment for the credit union loan.
  • Which loan is going cost Jason more in terms of finance charge?
  • Aside from the finance charge consideration, what other factors might influence Jason’s choice of loan?

Question #2 – Effective Annual Yeild
A savings account has a nominal rate of 7%. The interest is compounded daily. Find the account’s effective yield assuming 360 days in a year.

Question #3 – Annuity Payment
David is saving money to open a workout gym. He needs $10,000 in three years to purchase equipment and initiate a building lease. He’s investing his savings in an annuity yielding an annual interest rate of 6.5% compounded monthly. If the annuity requires that David make monthly investments, what annuity payment must Jeremy make to save $10,000?


  • Show all your work so that the instructor clearly sees how you solved the problem.
  • Make sure your final answer is clear and visible.


Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code “Newclient” for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.

The post mathematics question 433 appeared first on Top Premier Essays.

"Is this qustion part of your assignmentt? We will write the assignment for you. click order now and get up to 40% Discount"