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(Annuity payments) To pay for your education, you've taken out $24,000 in student loans. If you make monthly payments over 12 years at 7 percent
(Annuity payments) To pay for your education, you've taken out $24,000 in student loans. If you make monthly payments over 12 years at 7 percent compounded monthly, how much are your monthly student loan payments? The monthly payment of your student loan is $ - 246.81. (Round to the nearest cent.) (Annuity payments) To buy a new house, you must borrow $170,000. To do this, you take out a $170,000, 35-year, 9 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 9 percent interest on the declining balance. How large will your annual payments be? The amount of your annual payment will be $. (Round to the nearest cent.) (Related to Checkpoint 6.4) (Present value of a perpetuity) What is the present value of a $3,500 perpetuity discounted back to the present at 14 percent? The present value of the perpetuity is $. (Round to the nearest cent.) (Present value of a growing perpetuity) What is the present value of a perpetual stream of cash flows that pays $10,000 at the end of year one and then grows at a rate of 5% per year indefinitely? The rate of interest used to discount the cash flows is 9%. The present value of the growing perpetuity is $. (Round to the nearest cent.)
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