Big Dom's Pawn Shop charges an interest rate of 26.4 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers. a What rate should the shop report? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) You want to buy a new sports coupe for $89,500, and the finance office at the dealership has quoted you an APR of 7.1 percent for a 60 -month loan to buy the car. a What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b What is the effective annual rate on this loan? (Do not round intermediate . calculations and enter your answer as a percent rounded to 2 decimal places, You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 35 years and the payments will increase by 3.4 percent per year. If the appropriate discount rate is 7.4 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) You need a 35-year, fixed-rate mortgage to buy a new home for $260,000. Your mortgage bank will lend you the money at an APR of 5.55 percent for this 420 -month loan. However, you can afford monthly payments of only $1,000, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $1,000 ? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) After deciding to acquire a new car, you can either lease the car or purchase it on a twoyear loan. The car you wish to buy costs $37,500. The dealer has a special leasing arrangement where you pay $104 today and $504 per month for the next two years. If you purchase the car, you will pay it off in monthly payments over the next two years at an a. What is the present value of leasing the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b What is the present value of purchasing the car? (Do not round intermediate - calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What break-even resale price in two years would make you indifferent between buying and leasing? (Do not round intermediate calculations and round your answer to 2 A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $13,300 each, with the first payment occurring today, your child's 12 th birthday. Beginning on your child's 18 th birthday, the plan will provide $32,000 per year for four years. What return is this investment offering? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal