9. 10. 11. Interest Rate Annuity: You are financing a new car purchase with a loan...

 

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9. 10. 11. Interest Rate Annuity: You are financing a new car purchase with a loan of $10,000 to be repaid in 5 annual end-of-the year payments of $2,504.56. What annual interest rate is the company charging? Number of Periods Future Value: You deposit $10,000 in an account today that earns 4.87%. How many years will it take for it to grow to $100,000? Payment of Annuity (regular): Your parent's retirement savings is $850,000 and is in an account that earns 7% annually. They want to take out an equal amount from this account at the end of each year for the next 30 years. How much can they take out each year and there will $0 remaining after the last withdrawal? 9. 10. 11. Interest Rate Annuity: You are financing a new car purchase with a loan of $10,000 to be repaid in 5 annual end-of-the year payments of $2,504.56. What annual interest rate is the company charging? Number of Periods Future Value: You deposit $10,000 in an account today that earns 4.87%. How many years will it take for it to grow to $100,000? Payment of Annuity (regular): Your parent's retirement savings is $850,000 and is in an account that earns 7% annually. They want to take out an equal amount from this account at the end of each year for the next 30 years. How much can they take out each year and there will $0 remaining after the last withdrawal?

Answer rating: 100% (QA)

Solution The formula for calculating the interest rate of an annuity is r PVA 1 Where r annual inter... View the full answer