I don't know if my answer for the following questions are correct or not, please tell me what you think about these answers.
1.Candace wishes to buy a new car. Her budget allows her to make end-of-month payments of 500, and she has saved 1,500 for a down payment. Candace qualifies for a 24-month auto loan which has a nominal interest rate of 3.6% convertible monthly. How expensive a car can Candace buy?
i=3.6%/12 = 0.3% = 0.003 500 a24 = 11561.467 11561.467 +1500 = 13061.467
2.An association had a fund balance of $55 on January 1 and $45 on December 31. At the end of every month during the year, the association deposited $15 from membership fees. There were withdrawals of $20 on February 28, $40 on June 30, $90 on October 15, and $45 on October 31. Calculate the approximate dollar-weighted rate of return for the year using the simple interest approx to 4 decimal places. Assume each month is 1/12th of a year.
I = 45-55-(15*12-20-40-90-45) = 5
i? 5/ [55+ (15*(1-1/12) + 15*(1-2/12) + … + 15*(1-12/12)) -20*(1-2/12) -40*(1-6/12) – (90+45)*(1-10/12)] = 5/78.3333333 = 0.0638298
Thanks.
1.Candace wishes to buy a new car. Her budget allows her to make end-of-month payments of 500, and she has saved 1,500 for a down payment. Candace qualifies for a 24-month auto loan which has a nominal interest rate of 3.6% convertible monthly. How expensive a car can Candace buy?
i=3.6%/12 = 0.3% = 0.003 500 a24 = 11561.467 11561.467 +1500 = 13061.467
2.An association had a fund balance of $55 on January 1 and $45 on December 31. At the end of every month during the year, the association deposited $15 from membership fees. There were withdrawals of $20 on February 28, $40 on June 30, $90 on October 15, and $45 on October 31. Calculate the approximate dollar-weighted rate of return for the year using the simple interest approx to 4 decimal places. Assume each month is 1/12th of a year.
I = 45-55-(15*12-20-40-90-45) = 5
i? 5/ [55+ (15*(1-1/12) + 15*(1-2/12) + … + 15*(1-12/12)) -20*(1-2/12) -40*(1-6/12) – (90+45)*(1-10/12)] = 5/78.3333333 = 0.0638298
Thanks.
