What nominal annual interest rate will you be earning

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Reference no: EM131907461

1. 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 remaining $130,000 with a 30-year, monthly payment, amortized mortgage at a 6% nominal annual interest rate, with the first payment due in one month. What will your monthly payments be?

a. $779.42

b. $865.03

c. $798.57

d. $741.77

2. You agree to make 24 deposits of $500 at the beginning of each month into a bank account. At the end of the 24th month, you will have $13,000 in your account. If the bank compounds interest monthly, what nominal annual interest rate (rounded to one decimal place) will you be earning?

a. 7.6%

b. 8.8%

c. 8.0%

d. 8.4%

Reference no: EM131907461

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