Client #10

Michaela wants to buy a car. Your bank can lend her $12,000 at 2.59% for 60 months. Michaela needs to know how much her monthly payment will be.

(5 pt) Find Michaelas monthly payment amount. Write out 1) the correct formula with variables (e.g. P₀, P_N, N, r, etc.), and 2) the correct formula with the numerical values (round your answer to the nearest cent, 3) write the answer in a complete sentence.

Client #11

A town would like to build a new recreation center in 20 years. They predict they will need $15 million dollars. They want to know how much they should invest monthly in an annuity paying 8% compounded monthly.

(5 pt) Determine the amount the town needs to invest each month. Write out 1) the correct formula with variables (e.g. P₀, P_N, N, r, etc.), and 2) the correct formula with the numerical values (round your answer to the nearest cent, 3) write the answer in a complete sentence.