Self-Assessment HW3C(How much will each annual payment be (Using FV or PV)) Question 1 Big Brothers, Inc

Self-Assessment HW3C(How much will each annual payment be (Using FV or PV))

Question 1

Big Brothers, Inc. borrows $134,407 from the bank at 5.70 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 4 years. How much will each annual payment be?

Round the answer to two decimal places.

 Question 2

A commercial bank will loan you $30,220 for 5 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 4.12 percent of the unpaid balance. What is the amount of the monthly payments?

Round the answer to two decimal places.

 Question 3

You need to accumulate $105,127 for your son's education. You have decided to place equal year-end deposits in a savings account for the next 17 years. The savings account pays 12.50 percent per year, compounded annually.  How much will each annual payment be?

Round the answer to two decimal places.

 Question 4

You plan to buy the house of your dreams in 12 years. You have estimated that the price of the house will be $74,876 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 9.71 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams? 

Round the answer to two decimal places.