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Present value with periodic rates. Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost $22,000. The purchase will be financed with an interest rate of 10 % loan over 9 years. What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year) and monthly payments (12 per year)? Compare the annual cash outflows of the two payments. Why does the monthly payment plan have less total cash outflow each year? What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)? (Round to the nearest cent.) Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $20 at the end of each month from his paper route collections. Matt is 10 years old and will use the money when he goes to college in 8 years. What will be the value of Matt's account in 8 years with his monthly payments if he is earning 4 % ( APR) , 10 % ( APR ) , or 14 % ( APR ) ? What will be the value of Matt's account in 8 years with his monthly payments if he is earning 4 % ( APR ) ? S(Round to the nearest cent.)