1. As a student of interior design, Lisa wants to purchase an iMac Pro which is listed $6,299.00 online. She now has $5500 in saving account. If the interest rate is 6% p.a. compounded quarterly, how soon can she purchase the iMac Pro?
2. What is the nominal interest rate compounded quarterly if the effective interest rate is 8.4% p.a. compounded monthly?
3. Recently Sarah is considering purchasing a new car: her own car can be traded in for $2000, and the car dealer offers a 5 – year financing plan of 1.44% p.a. compounded monthly. What is the cash price if Sarah finds it affordable to pay $400 per month?
4. To purchase an iMac Pro which is listed $6,299.00 online, Lisa is now depositing $300 to her saving account every 6 months after she has saved $5500. If the interest rate is 6% p.a. compounded semi-monthly, how soon can she purchase the iMac Pro?
5. John has a student loan of $12,000. He is planning to start repaying the debt from January 1, 2021 and pay off the debt on Dec 31, 2025. How many dollars should he pay every quarter, if the interest rate is 5.6% compounded quarterly?