Assume you have a total of $41,500 to invest and want to receive an annuity of $5,600 for 20 years.
What interest rate do you have to earn on the $41,500 investment in order to receive the annual payments? (Round your answer to 2 decimal places. For example, enter .1234 as 12.34)
Larry Davis borrows $71,000 at 10 percent interest toward the purchase of a home. His mortgage is for 20 years.
If Larry decides to make annual payments, how much will they be? (Enter your answer as a positive number rounded to 2 decimal places.)
How much interest will he pay over the life of the loan? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
How much would you have to invest today to receive the following: (Enter all answers as positive numbers.)
$13,100 in 9 years at 9 percent. (Round your answer to 2 decimal places.)
$17,000 in 20 years at 7 percent. (Round your answer to 2 decimal places.)
$6,800 each year for 20 years at 6 percent. (Round your answer to 2 decimal places.)