Question

The Nashville Geetars, a professional foosball team, has just signed its star player Harold "The Wrist" Thornton to a new contract. One of the terms requires the team to make a lump sum payment of $13.19 million to the The Wrist exactly 10 years from today. The team plans to make equal annual deposits into an account that will earn 4.87 percent in order to fund the payment. How much must the team deposit each year?

You have just leased a car that has monthly payments of $345 for the next 3 years with the first payment due today. If the APR is 6.36 percent compounded monthly, what is the value of the payments today?

Answer 1

FVOrdinary Annuity = C*(((1 + i )^n -1)/i)

C = Cash flow per period

i = interest rate

n = number of payments

13190000= Cash Flow*(((1+ 4.87/100)^10-1)/(4.87/100))

Cash Flow = 1055045.14

Please ask remaining parts seperately, questions are unrelated