(Annulty nuenber of periods) You've just bought a new flat-screen TV for $3.400 and the stote you bought it from calers to ict you finance the entire purchase at an annual rate of 11 percent compounded monthly. If you take the financing and make monthly payments of $150, how long will it take to pay off the loan? How much will you pay in inserest over the life of the loan? a. The number years it will take to payy of the loan is years. (Reund to one decimal place.) b. The amount you will pay in interest over the Me of the loan is $ (Round to the nearest cent) (Future value of an annulty) Lets say you deposiled $160.000 in a 529 pisn (a tax advantaged college savings plan) hoping to havo $420,000 available 12 years later when your frat child starts college. Howeyer, you didnt inest very well, and 3 years later the ascount balance dropped to $1.40.000. Lefs look at what you need to do to get the college savings plan back en track a. What wat te original annual rate of retam needed to reach your goal when you started the fund 3 years ago? b. Wer ony $140.000 in the fund and 9 years temaining unti your frat chlid starts colege, what annual tate of return woild the tund have to make to teach your $420,000 gas if you add nothing to the acoount? c. Shoded by your experience of the past 3 years, you teel the college fland has invested too much in slocks, and you want a low-risk fund in order to ensure yeu hwo the necessary 5420,000 in 9 years. You are willing to make end-o-the-month deposits to the fund as woll. You find you can got a fued that promises to pay a guararteed arnual roturn of 5.5 percent which is compounded monthy. You decde to transfer the $140 cos to this new fund and make the niecessary morthly deposits. How lage of a monthly seposit must you make into this new find? d. Afler seeing how large the monthy depesit wodld be (in payt c of this problem), you decide to invest the 5140,000 today and 5300 at the end of each month for the next 9 years into a fund conslsing of 50 perceet slock and $0 percent bonds and hope for the best. What AfPR would the fand have to eam in orter to feach your $120.000 goal? a. If you iveseses $160,000 into a fund 3 years ago and hoped to have $420,000 avelatle 12 years later when your first child starts college, what was the criginal antual rabe of retum needed to reach yout gosi when you started the fund 3 years ago? 6 (Round to teo decimal places.) nothing is the abcount? (Round to tho deximal places.) large of a monither deponit must you mase into this new fund io meal yeut f420.000 gsal in 0 years? (reouss to the nearest cent) d. Now you decide to invest the $140.000 today and $300 at the end of each morth for the next 9 years ints a fund consisterg of 50 percont abock and 50 percent bonds and hope for the best. What antial rite of return woud the fund have to sam in erser to reach your 3420.000 gool? 4. Round to two docima places.)
