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Part 1A: Part 1B: Bill Padley expects to invest $18,000 for 8 years, after which he wants to receive $35,866.80. What rate of interest must
Part 1A:
Part 1B:
Bill Padley expects to invest $18,000 for 8 years, after which he wants to receive $35,866.80. What rate of interest must Padley earn? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Answer is complete but not entirely correct. Future Value Table Factor Present Value $ 18,000 Interest Rate 9 % $ 35,866.80 - 0.5019 Dave Krug finances a new automobile by paying $6,300 cash and agreeing to make 30 monthly payments of $530 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1, FV of $1. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided. Round PVA factor to 4 decimal places.) Answer is complete but not entirely correct. Monthly Table Factor Payment 530 X 8.0552 Table Values are Based on: 30 Present Value of Loan $ 4,269.26 = 12% % Cash Down Present Value of Loan $ 4,269.26 Cost of the Automobile 10,569.26% + Payment 6,300 $ = $
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