WEEK THREE

1. (Nonannual compounding using a calculator) Bowflex's television ads say you can get a fitness machine that sells for $999 for $44.01 a month for 24 months. What APR are you paying on this Bowflex loan? The APR you are paying on the loan is %. (Round to two decimal places.) ANSWER:

2. (Loan amortization) On December 31, Beth Klemkosky bought a yacht for $80,000, paying $20,000 down and agreeing to pay the balance in 55 equal end-of-year installments at 14 percent interest on the declining balance. How big will the annual payments be? These equal payments will be $. (Round to the nearest cent.) ANSWER:

PLEASE ANSWER EACH QUESTION CORRECTLY AND FULLY!!!!