13. Loan amortization and capital recovery Present value of annuity calculations are widely used for loan amortization and capital recovery problems. Both loan amortization and capital recovery problems require the calculations of annuity payments based on a given required rate of return. Suppose you take out a loan. The process in which your liability will be gradually eliminated through regular payments over time is called amortization After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000with no ($0) down payment. She agreed to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 5% per year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan. Calculate the annual payment and complete the following loan amortization table: Note: Round your answers to two decimals places. Year Payment Interest Paid Principal Paid Ending Balance Beginning Amount $45,000.00 1 2 3 4 $0.01 Deferred annuities are contracts that allow investors to delay payments, income, installments, or a lump-sum amount until the investor decides to receive them. Annuities will be referred to as deferred annuities if the payments begin more than one year in the future. Consider the case of Charlize, who is 50 years old and has loved animals all her life. She wants to make a donation to the animal shelter near her house, but she is a little worried about her post-retirement income. Therefore, Charlize decides to invest in a charitable gift annuity in which the animal shelter promises to pay Charlize $11,000 each year for four years after she turns 65. The payments will be made at the end of each year. The contract of the charitable gift annuity includes an annual rate of return of 7%. How much money should Charlize deposit in the charitable gift annuity to receive $11,000 for four years after she turns 65 years old?(Note: Round intermediate calculation to two decimal places.) O $9,778.41 O $13,748.25 O $13,504.49 O $10,462.90