Question

Yardley owes the dentist's office $2000 for a procedure. They are charging him 10% interest until it is paid off. If he wants to have it paid off in 24 months, how much will he need to pay each month? Loan problem?	Answer 1Choose...payout annuity problemcompound interest problemsavings annuity problemloans problem
Laurence wants to take a vacation in 3 years that will cost $2000. How much does he need to set aside each month into an account earning 3% interest so that he will reach his goal in 3 years? Saving problem?	Answer 2Choose...payout annuity problemcompound interest problemsavings annuity problemloans problem
Millicent wants to put money aside for her son's college education. How much does she have to deposit now so that over the next 18 years, it will grow to a total of $50,000? Compound interest problem?	Answer 3Choose...payout annuity problemcompound interest problemsavings annuity problemloans problem
Cerise wants to withdraw $20,000 per year from her savings account for the next 6 years. How much does she need to have in the account to make that possible if her account earns 8% interest? Payout annuity problem?	Answer 4Choose...payout annuity problemcompound interest problemsavings annuity problemloans problem

Answer 1

1)

Loans problem is a problem that requires the regularly loan payments to be made at specified regular interval. These intervals may be monthly, quarterly, semi-annually or annually.

Hence, It is a “loans problem”