Questions: 9-13

9. (Related to Checkpoint 6.1) (Loan amertitation) On Decamber 31, Best Klemkasky bought a yacht for 580,000 she pad 518.000 domn and agreed to pay the balance in 12 equal annual instalments thet include boch the principal and 9 percent interest co the declining balance. How big will the anmual payments be? a. On Decembier 31, Eleth Kemkosky bought a yacht for $80,000 and pad $18,000 down, how much does she need to bonrow to purchase the yachr? s (Round to the nearest dollar) b. If Bech agrees to pay the loan plus 9 percent conqound interest on the unpad balance over the next 12 years in 12 equal end-of-year payments, what wit those equal papments be? s (Round to the nearest cent). would you pay on that ioan? The interest rate you would pay on the ban is 16. (Round to tho deomal places) 11. Annuity number of periods) Youve just bought a new Aat-screen TV for $3.000 and the storo you bought a from oflens to lit you finsnce the ensire purchase at an ancual rate of 14 percent compounded monthy, If you take the financing and make manthif payments of $100, how long wil it take to pay of the loan? How much will you pay in interest over the ife of the loan? a. The number of yean it wat take to pay of the loan is years (Round to one decimal place) b. The amount you will pay in inferest over the lte of the loan is 5 (Round to the nearest cort) 12 (Components of annuily payments) Youve just taken on e 17 -year, $160.000 mongage with a quoted interest rate of 5 percent caling for payments semiannualy How much of your tent yeare loan payments (he indial two payments, with fhe first coming afer 6 montrs have passed, and the second one coming at the end of the first year) goes foward paying interesc, rather than prinopar? a. What is the semiannal payment of your ioan? s (Round to the nearest cent.) b. How much of your fint year's 2 loan payments goes toward poying interest, rather man pancipal? 3 (Round to the nearost cent) 13. (Present value of an annulty due) Determine the present value of an annuity due of $1,000 per year for 10 yeas discoumted tack to the present of an arnual rate of 10 percent What would be the preiens value of this annaty die if it were dacounted at an antial rate of is percent? a. If the annual discount rate is 10 percent, fre present value of the annuty due is 1 (Round to the nearest cene) b. If the annual discount rate is 15 pereent, the present vatue of the annuty due is $ (Round to the neasest cent)