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Please help with these three questions. Thank you! You have a loan outstanding. It requires making eight annual payments of $2,000 each at the end
Please help with these three questions. Thank you!
You have a loan outstanding. It requires making eight annual payments of $2,000 each at the end of the next eight years. Your bank has offered to restructure the loan so that instead of making the eight payments as originally agreed, you will make only one final payment in eight years. If the interest rate on the loan is 7%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment? The final payment the bank will require you to make is $ (Round to the nearest dollar.) What is the present value of $9,000 paid at the end of each of the next 61 years if the interest rate is 10% per year? The present value is $ 7 (Round to the nearest cent.) Assume that your parents wanted to have $160,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 7.0% per year on their investments a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduate and decide to have $200,000 saved just in case, how much would they have to save each year to reach their new goal
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