3C.

Big Brothers, Inc. borrows $498,733 from the bank at 11.27 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 10 years. How much will each annual payment be?

Round the answer to two decimal places.

3E.

You are considering an investment that has a nominal annual interest rate of 7.32 percent, compounded semiannually. Therefore, the effective annual rate, or EAR (annual percentage yield) is_____.

Round the answer to two decimal places in percentage form.

3D

You have been offered the opportunity to invest in a project that will pay $4,150 per year at the end of years one through three and $6,962 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 15.74 percent per year. What is the future value of this cash flow pattern at the end of year five?

Round the answer to two decimal places.

3B

What is the present value of the following annuity?

$1,800 every half year at the beginning of the period for the next 3 years, discounted back to the present at 4.85 percent per year, compounded semiannually.

Round the answer to two decimal places.

2A

You have accumulated some money for your retirement. You are going to withdraw $88,770 every year at the beginning of the year for the next 16 years starting from today. How much money have you accumulated for your retirement? Your account pays you 17.17 percent per year, compounded annually. To answer this question, you have find the present value of these cash flows.

Round the answer to two decimal places.