Exercise 6-11 (Part Level Submission)

Tamarisk Excavating Inc. is purchasing a bulldozer. The equipment has a price of $109,500. The manufacturer has offered a payment plan that would allow Tamarisk to make14equal annual payments of $14,864.21, with the first payment due one year after the purchase.

(a) How much total interest will Tamarisk pay on this payment plan?

Exercise 6-15

Newman Bogut just received a signing bonus of $945,600. His plan is to invest this payment in a fund that will earn11%, compounded annually.

If Bogut plans to establish the AB Foundation once the fund grows to $2,684,956, how many years until he can establish the foundation?

_____ years

Instead of investing the entire $945,600, Bogut invests $318,800today and plans to make10equal annual investments into the fund beginning one year from today. What amount should the payments be if Bogut plans to establish the $2,684,956foundation at the end of10years?

Payments: $