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##### I have 3 questions I need help understanding-...

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I have 3 questions I need help understanding- 1. Suppose you are going to receive \$15,000 per year for four years. The appropriate interest rate is 10 percent. Requirement 1: (a)What is the present value of the payments if they are in the form of an ordinary annuity? \$66,164.76 \$69,615.00 \$47,547.98 \$76,576.50 \$52,302.78 (b)What is the present value if the payments are an annuity due? \$52,302.78 \$47,547.98 \$66,164.76 \$69,615.00 \$76,576.50 Requirement 2: (a)Suppose you plan to invest the payments for 52302.78 years. What is the future value if the payments are an ordinary annuity? \$66,164.76 \$47,547.98 \$52,302.78 \$76,576.50 \$69,615.00 (b)Suppose you plan to invest the payments for 52302.78 years. What if the payments are an annuity due? \$69,615.00 \$66,164.76 \$47,547.98 \$76,576.50 \$52,302.78 2. What is the present value of \$2,825 per year, at a discount rate of 7 percent, if the first payment is received 6 years from now and the last payment is received 22 years from now? \$19,664.95 \$18,136.50 \$66,500.50 \$51,386.75 \$27,581.10 3. You want to buy a new sports car from Muscle Motors for \$44,200. The contract is in the form of a 60-month annuity due at a 5.95 percent APR. Required: What will your monthly payment be? \$849.27 \$219.16 \$1,378.37 \$780.50 \$2,629.90 Please show all work so I fully understand how to solve the problem.

Paper#8546 | Written in 18-Jul-2015

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