Problem 5-46 EAR of Add-On Interest Loan (LG5-7, LG5-8) To borrow $1,650, you are offered an add on interest loan at 8.1 percent with 12 monthly payments. Compute the 12 equal payments. (Round your answer to 2 decimal places.) 25 points Skipped Equal payments eBlook Print Reerences Use the amount you borrowed and the monthly payments you computed to calculate the APR of the loan. Then, use that APR to compute the EAR of the loan. (Do not round intermediate calculations and round your answer to 2 decimal places.) EAR 12 Problem 5-22 Present Value (LG5-3) Given a 5 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,050, $1,350, $1,350, and $1,450, respectively. (Do not round Intermediate calculations and round your final answer to 2 decimal places.) 25 points Skipped Present value 13 Problem 5-24 Present Value of Multiple Annuities (LG5-4) A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,800 per month for the next three years and then $1,800 per month for two years after that. If the bank is charging customers 9.25 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) 2.5 points Skpped Present value eoo Problem 5-53 Loan Balance (LG5-9) Rachel purchased a car for $18,500 three years ago using a 4 year loan with an interest rate of 9.0 percent. She has decided that she would sell the car now, if she could get a price that would pay off the balance of her loan. 2.5 points Skipped What is the minimum price Rachel would need to receive for her car? Calculate her 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.) eBook Minimum price Print Problem 5-4 Future Value of an Annuity (LG5-2) What is the future value of a $610 annulty payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.) kipped Future value 17 Problem 5-1 Future Value (LG5-1) Compute the future value in year 7 of a $2,200 deposit in year 1, and another $1.700 deposit at the end of year 4 using a 8 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.) ints Skipped Future value Problem 4 and 5-6 Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $4.200 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 $4,200 bill in three years? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) ipped Book Present value Print erences How much would you have to deposit in the savings account each month to be able to pay the bil? (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Annuity payment Problem 5-33 Annuity Interest Rate (LG5-8) What's the interest rate of a 5-year, annual $5,300 annuity with present value of $21,500? (Use a time value of money calculator or a spreadsheet. Round your answer to 2 decimal places.) 5 ints Skipped I % Annuity interest rate
