Assume you have a total of $43,500 to invest and want to receive an annuity of $6,000 for 20 years. What interest rate do you have to earn on the $43,500 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 $82,000 at 12 percent interest toward the purchase of a home. His mortgage is for 30 years.
a. If Larry decides to make annual payments, how much will they be? (Enter your answer as a positive number rounded to 2 decimal places.)
b. 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.)