Problem 4-38 Solving for Rates (LG4-7) What annual rate of return is implied on a $2,500 loan taken next year when $4,000 must be repaid in year 47 (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Annual rate of return % Solving for Rates What annual rate of return is earned on a $2,300 investment when it grows to $5,100 in ten years? Multiple Choice o o o o Compounding with Different interest Rates A deposit of $420 earns interest rates of 8.2 percent in the first year and 10.2 percent in the second year. What would be the second year future value? Multiple Choice $49728 $500.79 Problem 5-49 Amortization Schedule (LG5-9) Create the amortization schedule for a loan of $16,500, paid monthly over three years using an APR of 9 percent. Enter the data for the first three months. (Round your answers to 2 decimal places.) Month Beginning Balance Total Payment Interest Paid Principal Paid Ending Balance Problem 5-54 Loan Balance (LG5-9) Hank purchased a car for $25,500 two years ago using a 3-year loan with an interest rate of 72 percent. He has decided that he would sell the car now, if he could get a price that would pay off the balance of his loan. What's the minimum price Hank would need to receive for his car? Calculate his monthly payments, then use those payments and the remaining time left to compute the present value (called balance) of the remaining loan. (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Minimum price Problem 4 and 5-6 Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $4,800 living room set with three years before you need to make any payments (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 4 percent APR, compounded monthly, to pay the $4,800 bill in three years? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Present value How much would you have to deposit in the savings account each month to be able to pay the bill? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Annuity payment Problem 4-11 Present Value (LG4.4) What is the present value of a $1.750 payment made in seven years when the discount rate is 10 percent? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Problem 4 and 5-4 Future Value and Number of Annuity Payments Your client has been given a trust fund valued at $1.58 million. She cannot access the money until she turns 65 years old, which is in 15 years. At that time, she can withdraw $24,000 per month If the trust fund is invested at a 5.5 percent rate, how many months will it last your client once she starts to withdraw the money? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Number of months Problem 5-48 Low Financing or Cash Back? (LG5-4, LG5-9) A car company is offering a choice of deals. You can receive $2,000 cash back on the purchase, or a 3.4 percent APR. 4-year loan. The price of the car is $27,000 and you could obtain a 4-year loan from your credit union, at 8.4 percent APR. Since the cash back is used to reduce the size of the loan, the cost of the car is entirely paid for with the debt. Therefore, the true cost of each deal can be compared through the monthly payment. Compute the monthly payment of each deal. Which one is cheaper? 3.4 percent APR offer $2.000 cash back offer Problem 4-30 Solving for Rates (LG4-7) What annual rate of return is earned on a $5,000 investment when it grows to $11,750 in five years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate of return %