1. How long will it take to pay off a loan of $49, 000 at an annual rate of 8 percent compounded monthly if you make monthly payments of $600? Use five decimal places for the monthly percentage rate in your calculations.
2. Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $18,078.56 that will pay them $2,000 per year for 15 years. They don't have the slightest idea what return they would be making on their investment of $18,078.56.What rate of return would they be earning?
3. Lisa Simpson wants to have $1,300,000 in 35 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 10.75 percent annually. What must Lisa's annual deposit be?