CHAPTER 6 (8.)

1. John Jamison wants to accumulate $75,454 for a down payment on a small business. He will invest $32,000 today in a bank account paying 10% interest compounded annually. Approximately how long will it take John to reach his goal?

2. The Jasmine Tea Company purchased merchandise from a supplier for $44,351. Payment was a noninterest-bearing note requiring Jasmine to make five annual payments of $12,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement?

3. Sam Robinson borrowed $19,000 from a friend and promised to pay the loan in 12 equal annual installments beginning one year from the date of the loan. Sams friend would like to be reimbursed for the time value of money at an 11% annual rate. What is the annual payment Sam must make to pay back his friend?

Required 1 Required 2 Required 3 John Jamison wants to accumulate $75,454 for a down payment on a small business. He will invest $32,000 today in a bank account paying 10% interest compounded annually. Approximately how long will it take John to reach his goal? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Present Value: Future Value Required 1 Required 2 Required 3 The Jasmine Tea Company purchased merchandise from a supplier for $44,351. Payment was a noninterest-bearing note requiring Jasmine to make five annual payments of $12,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Show less Present Value: Annuity Payment Required 1 Required 2 Required 3 Sam Robinson borrowed $19,000 from a friend and promised to pay the loan in 12 equal annual installments beginning one year from the date of the loan. Sam's friend would like to be reimbursed for the time value of money at an 11% annual rate. What is the annual payment Sam must make to pay back his friend? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Show less Table or calculator function: Present Value: Annual Installment