Problem 5-23 Present Value of Multiple Annuities (LG5-4) 25 ins A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $2,100 per month for the next three years and then $4,200 per month for two years after that. If the bank is charging customers 775 percent APR, how much would it be willing to lend the business owner? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Procent value Problem 5-16 Effective Annual Rate (LG5-7) A loan is offered with monthly payments and a 14.00 percent APR. What's the loan's effective annual rate (EAR)? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Efective annual rate Problem 5-36 Annuity Interest Rate (LG5-8) 25 ponts What annual interest rate would you need to earn if you wanted a $600 per month contribution to grow to $50,500 in six years? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Sped Annual interest rate Problem 5-47 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. 5-year loan. The price of the car is $17.000 and you could obtain a 5-year loan from your credit union, at 7.4 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 MC Qu. 19 Solving for Rates What annual rate of return is implied on a $am... Solving for Rates What annual rate of return is implied on a $2.200 loan taken next year when $5,100 must be repaid in year 11? Problem 5-3 Future Value of an Annuity (LG5-2) What is the future value of a $990 annuity payment over five years if interest rates are 9 percent? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Future value Problem 5-23 Present Value of Multiple Annuities (LG5-4) 25 ins A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $2,100 per month for the next three years and then $4,200 per month for two years after that. If the bank is charging customers 775 percent APR, how much would it be willing to lend the business owner? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Procent value Problem 5-16 Effective Annual Rate (LG5-7) A loan is offered with monthly payments and a 14.00 percent APR. What's the loan's effective annual rate (EAR)? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Efective annual rate Problem 5-36 Annuity Interest Rate (LG5-8) 25 ponts What annual interest rate would you need to earn if you wanted a $600 per month contribution to grow to $50,500 in six years? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Sped Annual interest rate Problem 5-47 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. 5-year loan. The price of the car is $17.000 and you could obtain a 5-year loan from your credit union, at 7.4 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 MC Qu. 19 Solving for Rates What annual rate of return is implied on a $am... Solving for Rates What annual rate of return is implied on a $2.200 loan taken next year when $5,100 must be repaid in year 11? Problem 5-3 Future Value of an Annuity (LG5-2) What is the future value of a $990 annuity payment over five years if interest rates are 9 percent? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Future value