Question: A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next

A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next 3 years. If you pay the entire bill immediately, you can take a 10% discount from the purchase price. a. Calculate the present value of the payments, if you can borrow or lend funds at a 4% interest rate. Assume the product sells for $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ b. Calculate the payment net of discount. Payment net of discount $ c. Which is a better deal? Installment payment plan Pay the entire bill immediately Assume you take out an $8,900 car loan that calls for 48 monthly payments of $330 each: a. What is the APR of the loan? (Do not round intermediate calculations. Round your answer to 3 decimal places.) APR % b. What is the effective annual interest rate on the loan? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual interest rate % Assume you take out an $7,600 car loan that calls for 60 monthly payments of $200 each. a. Calculate the annual payment if the loan is repaid in four annual year-end installments. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual payment $ You invest $2,200 at a 6% annual interest rate, stated as an APR. Interest is compounded monthly. How much will you have in 1.0 year? In 1.5 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 1 year 1.5 years $ a. How much will $100 grow to if invested at a continuously compounded interest rate of 8% for 8 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future value b. What if it is invested for 8 years at 8%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future value

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