Number of Payments or Years		Annual Interest Rate		Present Value		Annuity		Future Value
9		10%		0		$241.34		$32772.7132772.71 (Round to the nearest cent.)

19

18%

0

$1,313.43

$162095.04162095.04 (Round to the nearest cent.)

27

5%

0

$605.01

$33075.3733075.37 (Round to the nearest cent.)

340

0.5%

0

$496.66

$442107.80442107.80 (Round to the nearest cent.)

Present

value.

A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only

4

annual payments of

$2,700,

this beautiful 1998 Honda Civic can be yours." If you can borrow money at

8%,

what is the price of this car? Assume the payment is made at the end of each year.

If you can borrow money at

8%,

what is the price of this car?

Number of

payments.

Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is to receive a visit from an enforcer and the debt is due in full at once. Offer 2 is to pay back

$4,000

at the end of the year at an interest rate of

21%

until Phil pays off the loan principal. Phil owes Tony

$11,000.

How long will it take for Phil to pay off the loan if he takes offer 2?

How long will it take for Phil to pay off the loan if he takes offer 2?

Future

value.

Jack and Jill are saving for a rainy day and decide to put

$70

away in their local bank every year for the next

25

years. The local Up-the-Hill Bank will pay them

5%

on their account. a.If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of

25

years?b. Unfortunately, Jack had an accident in which he sustained head injuries after only

10

years of savings. The medical bill has come to

$900.

Is there enough in the rainy-day fund to cover it?

a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of

25

years?