answer number 8, answer number 41,

a. Semiannually b. Quarterly BASIC 6. A leading broker has advertised money multiplier certificates that will triple your 2. money in nine years; that is, if you buy one for $333.33 today, it will pay you $1,000 at the end of nine years. What rate of return will you earn on these money multi- plier certificates? BASIC 7. What is the present value of $800 to be received at the end of eight years, assuming the following annual interest rate? a. 4 percent, discounted annually b. 8 percent, discounted annually c. 20 percent, discounted quarterly ind. O percent boblox ASICb 8. Mr. Jones bought a building for $60,000, payable on the following terms: a $10,000 down payment and 25 equal annual installment payments to include principal and interest of 10 percent per annum. Calculate the amount of the installment payments. How much of the first year's payment goes toward reduc- being the principal amount?lo bolo 9. A firm purchases 100 acres of land for $200,000 and agrees to remit 20 equal annual end-of-year installments of $41,067 each. What is the true annual interest rate on this loan? ASIC "Color blocks behind the numbers denote problems that have check answers provided at the end of the book. CHALLENGE INTERMEDIATE at the end of years 11 through 30 to meet this objective? The interest rate for the hat equal amount must he save first 10 years will be 5 percent. After that time, the interest rate is expected to be 7 percent. 40. Torbet Fish Packing Company wants to accumulate enough money over the next 10 years to pay for the expected replacement of its digitalized, automated scaling machine. The new machine is expected to cost $200,000 in 10 years. Torbet cur- rently has $10,000 that it plans to invest over the next 10 years to help pay for the new machine. Torbet wants to put away an equal, end-of-year amount into a sinking fund investment account at the end of each of the next 10 years. Earnings on all of the investments are expected to be 7 percent for the first five years and 9 percent thereafter. What equal, end-of-year amount must Torbet save each year over the next 10 years to meet these needs? 41. Crab State Bank has offered you a $1,000,000 five-year loan at an interest rate of 11.25 percent, requiring equal annual end-of-year payments that include both principal and interest on the unpaid balance. Develop an amortization schedule for this loan. CHALLENGE 42. Garrett Erdle has just turned 26 years of age. Although Garrett currently has a neg- ative net worth, he expects to pay off all of his financial obligations within four years and then to embark on an aggressive plan to save for retirement. He wishes to be able to withdraw $100,000 per year during the first 10 years of retirement (the first withdrawal coming on his 61st birthday) and $150,000 during the next 10 years of retirement. As a precaution against unexpected longevity, he would like to have a net worth of $500,000 after the withdrawal on his 80th birthday. Garrett expects the after-tax return on his investments to be 6 percent until he turns age 50, and 7 percent thereafter. What equal annual amount must Garrett save at the end of each year (the first deposit will occur on his 31st birthday and the last deposit will occur Lawl to meet these retirement goals? care of her in