Question

What is the present value of a security that will pay $44,000 in 20 years if securities of equal risk pay 12% annually? Do not round intermediate calculations. Round your answer to the nearest cent.

$ -4561.34

2)You need $11,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 6 years, with the first payment to be made one year from today. He requires a 9% annual return.

1. What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

2. How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent.

   Interest: $  

   Principal repayment: $

3)You borrow $85,000; the annual loan payments are $4,336.64 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number.

what I put in is wrong

Answer 1

FV (1+i/n)Ant PV r =rate per period t- years x compounding $4,561.34 present value pv 44,000 (1+12%)^(20)