Question
1. Today, you are purchasing a 20-year, 5 percent annuity at a cost of $48,350. The annuity will pay annual payments starting one year from
1. Today, you are purchasing a 20-year, 5 percent annuity at a cost of $48,350. The annuity will pay annual payments starting one year from today. What is the amount of each payment? A) $4,222.00 B) $3,879.00 C) $4,301.00 D) $3,774.00 E) $3,727.00
2. Kathy's donor spent $113,800 to refurbish its current facility. The firm borrowed 65 percent of the refurbishment cost at 7.82 percent interest for six years. What is the amount of each monthly payment? A) $1,731.00 B) $2,085.00 C) $1,253.00 D) $1,290.00 E) $1,449.00
3. Industrial Tools owes you $48,600. This amount is seriously delinquent, so you have offered to accept weekly payments for one year at an interest rate of 3 percent to settle this debt in full. What is the amount of each payment assuming there are 52 weeks in a year? A) $940.00 B) $929.00 C) $919.00 D) $910.00 E) $948.00
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