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PLEASE SHOW DETAILED WORK. FV and PV of Annuities a) After carefully going over your budget, you have determined you can afford to pay $632
PLEASE SHOW DETAILED WORK.
FV and PV of Annuities a) After carefully going over your budget, you have determined you can afford to pay $632 per month toward a new sports car. You call up your local bank and find out that the going rate is 1 percent per month for 48 months. How much can you borrow? b) Suppose you begin saving for your retirement by depositing $2,000 per year in an IRA. If the interest rate is 7.5%, how much will you have in 40 years? Number of Time Periods and Number of Payments c) Suppose you borrow $2,000 at 5%, and you are going to make annual payments of $734.42. How long before you pay off the loan? d) Suppose you want to borrow $20,000 for a new car. You can borrow at 8% per year, compounded monthly (8/12 = .66667% per month). If you take a 4 year (48 months) loan, what is your monthly paymentStep by Step Solution
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