You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 4% with interest paid monthly a. What will be the monthly loan payment? Round your answer to the nearest cent. b. What will be the loan's EAR? Round your answer to two decimal places. Finding the required interest rate Your parents will retire in 23 years. They currently have $330,000, and they think they will need $1,250,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. oo a. What's the future value of a 4%, 5-year ordinary annuity that pays $600 each year? Round your answer to the nearest cent. b. If this was an annuity due, what would its future value be? Round your answer to the nearest cent. Future value If you deposit $6,000 in a bank account that pays 5% interest annually, how much would be in your account after 5 years? Round your answer to the nearest cent. Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent. a. $800 per year for 16 years at 4%. b. $400 per year for 8 years at 2%. C. $300 per year for 12 years at 0%. Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent. d. $800 per year for 16 years at 4%. $ e. $400 per year for 8 years at 2%. f. $300 per year for 12 years at 0%. Present and future values for different periods Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Round your answers to the nearest cent. a. An initial $400 compounded for 1 year at 8%. o b. An initial $400 compounded for 2 years at 8%. c. The present value of $400 due in 1 year at a discount rate of 8%. d. The present value of $400 due in 2 years at a discount rate of 8%