Question

1. Jacob decides to open a savings account while he is in college. His bank offers him an account that earns 1.10% APR compounded monthly. If he opens the account with $600 and deposits $150 every month until he graduates in four years, how much money will he have in his account?

   		$8,370.08
   		$7,984.28
   		$29,585.95
   		$7,800

5 points   

QUESTION 12

1. Lauren is purchasing a house for $175,000. Her bank gives her a 30 year loan with an APR of 4.25%. How much are Lauren’s monthly payments?

   		$486.11
   		$860.89
   		$5833.33
   		$762.51

5 points   

QUESTION 13

1. Ben and Becky own a small business, and even though they are considered "essential" and haven't had to close, their revenue has decreased. They have been approved for a $20,000 loan to help them meet their expenses so they can stay open and don't have to lay off any of their employees. Once they begin repaying their loan they will have five years to pay it back, with a 4.25% APR.

   If they pay off the loan as scheduled, what will be the total that they pay?

   		$22,235.40
   		$20,850.00
   		$17,985.60
   		$24,250.00

Answer 1

Calculation for each question is given below

Working is shown below