A Present value with periodic rates.

Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost $20,000. The purchase will be financed with an interest rate of 7.5% loan over 7 years.

What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)?

B future value with periodic rates.

Matt Johnson delivers newspapers and is putting away $5050 at the end of each quarter from his paper route collections. Matt is 8 years old and will use the money when he goes to college in 10 years. What will be the value of Matt's account in 10 years with his quarterly payments if he is earning 4%(APR), 11 %(APR), or13 % APR)?