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New Sunrise, has just leased a exist28,000 BMW for you. The lease requires six beginning of the payments that will fully amortize the cost of

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New Sunrise, has just leased a exist28,000 BMW for you. The lease requires six beginning of the payments that will fully amortize the cost of the car. What is the amount of the payments if the interest rate is 12 percent? What is the financing cost of this lease? Time Value of Money: Lottery and Insurance Do the following problems. The Florida lottery agrees to pay the winner exist250,000 at the end of each year for the next 20 years. What would be the value of this lottery if you plan to put each payment in an account earning 9 percent? An insurance company offers you an end of year annuity of exist48,000 per year for the next 20 years. They claim your return on the annuity is 9 percent. What should you be willing to pay today for this annuity? Time Value of Money: Effective Interest Rate monthly statement from your bank credit card shows that the monthly rate of interest is 15%. Wh annual effective rate of interest you are being charged on your credit card? high school student put exist2,000 end each year 4 years into an IRA

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