Calculating Annuities Due You want to buy a new sports car from Muscle Motors for $84,000. The contract is in the form of a 60-month annuity due at an APR of 6.08 percent. What will your monthly payment be ?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityHow much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?Determining Loan Repayments Jerry Rockness needs 40,000 to pay off a loan due on December 31, 2028. His plans included the making of 10 annual deposits beginning on December 31, 2019, in accumulating a fund to pay off the loan. Without making a precise calculation, Jerry made 3 annual deposits of 4,000 each on December 31, 2019, 2020, and 2021, which have been earning interest at 10% compounded annually. Required: What is the equal amount of each of the next 7 deposits for the period December 31, 2022, to December 31, 2028, to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?
- You want to buy a new sports car from Muscle Motors for $84,000. The contract is in the form of a 60-month annuity due at an APR of 7.55 percent. What will your monthly payment be?You want to buy a new sports car from Muscle Motors for $44,000. The contract is in the form of an annuity due for 36 months at an APR of 8.00 percent.What will your monthly payment be?you want to buy a new sports car from muscle motors for 44300. The contract is in the form of a 72 month annuity due at an APR of 6.05 percent. What will your monthly payment be?. ...
- You want to buy a new sports car from muscles motors for $79000. The contract is in the form of a 48-month annuity due at an APR of 7.3%. What will your monthly payment be ?2. A lathe for a machine shop costs 600,000 if paid in cash. On the installment plan, Engr. Dela Cruzshould pay 200,000 down payment and 10 monthly installments, the first due at the end of the first yearafter purchase. A.) What type of annuity is the installment plan?B.) If money is worth 10% compounded monthly, determine the monthly installments.13. Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $80,000 at age 65, the firm will pay the retiring professor $600 a month until death. a. If the professor's remaining life expectancy is 20 years, what is the monthly rate on this annuity? (Round your answer to 4 decimal places.) The monthly rate on the annuity % What is the effective annual rate? (Round your answer to 3 decimal places.) The effective annual rate % What is the APR? (Round your answer to 4 decimal places.) APR % b. If the monthly interest rate is .5%, what monthly annuity payment can the firm offer to the retiring professor? (Round your answer to the nearest cent.) PMT $
- A company wants to have $20,000 at the beginning of each six month period for the next 4 1/2 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.04%, compounded semi annually? (a)Decide whether the problem relates to an ordinary annuity or an annuity due. (B)Solve the problem. (round your answer to the nearest sent)A company wants to have $50,000 at the beginning of each 6-month period for the next 4 1/2 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.29%, compounded semiannually? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. ordinary annuityannuity due (b) Solve the problem. (Round your answer to the nearest cent.) $Suppose you purchase for 34028.07 dollars an annuity that earns 6.8 percent effective. The annuity will make 37 annual payments, with the first coming one year from now, and each payment will be 75 dollars larger than the previous one. What will be the amount of the 12th payment?
