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(Related to Checkpoint 6.1) (Loan amortization) On December 31, Beth Klamkosky bought a yacht for $110.000 She paid $10,000 down and agreed to pay the
(Related to Checkpoint 6.1) (Loan amortization) On December 31, Beth Klamkosky bought a yacht for $110.000 She paid $10,000 down and agreed to pay the balance in 5 equal annual installments that include both the principal and 8 percent interest on the declining balance How big wil the annual payments be? a. On December 31, Both Klemkosky bought a yacht for $110,000 and paid $10,000 down, how much does she need to borrow to purchase the yacht? 5 94,000 (Round to the nearest dollar) b. If Beth agrees to pay the loan plus 8 percent compound interest on the unpaid balance over the next 5 years in 5 equal end of year payments, what will those equal payments be? (Round to the nearest cent.) (Related to Checkpoint 6.1) (Annuity payments) Lisa Simpson wants to have $1,500,000 in 45 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 9 75 percent annually What must Lisa's annual deposit be? The amount of Lisa's annual deposit must be $ (Round to the nearest cent)
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