Question 1
A car loan requires monthly payments of $450 for 5 years at an interest rate of 6% per annum, compounded monthly. Calculate the present value of this loan, correct to the nearest dollar.
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General Mathematics · Unit 4 · Loans, investments and annuities 1 · Present value of ordinary annuities
Solve practical problems involving the present value of an ordinary annuity, including determining the total amount of the annuity, periodic payment, total payments and total interest. General Mathematics 2025 v1.3
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Question 2
A car retailer offers a loan of \(\$250{,}000\) to be repaid through monthly instalments over 5 years at a fixed interest rate of 7.2% per annum, compounded monthly. Which of the following best represents the periodic payment required under this ordinary annuity arrangement?
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Question 3
A university graduate plans to withdraw equal amounts from an investment fund at the end of each year for 6 years. The investment fund currently contains $48,000 and earns interest at 4.2% per annum. Calculate the annual withdrawal amount, correct to the nearest cent.
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Question 4
A car dealership offers a financing plan where a customer can pay for a vehicle through equal monthly payments of $450 at the end of each month for 5 years. The interest rate is 6% per annum, compounded monthly. Determine the present value (purchase price) of the vehicle, correct to the nearest cent.
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