A company wants to have $30,000 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 6.66%, compounded semiannually?

(a) Decide whether the problem relates to an ordinary annuity or an annuity due.

(b) Solve the problem. (Round your answer to the nearest cent.)

The problem describes a debt to be amortized. (Round your answers to the nearest cent.) Sean Lee purchases $30,000 worth of supplies for his restaurant by making a $4,000 down payment and amortizing the remaining cost with quarterly payments over the next 7 years. The interest rate on the debt is 16% compounded quarterly.

(a) Find the size of each payment. $

(b) Find the total amount paid for the purchase. $

(c) Find the total interest paid over the life of the loan. $