Identify the present value $P,$ the regular payment $R,$ the interest rate per period $i,$ and the number of periods $n$ for each

of the following annuity examples.

If you pay $$25$ each month on a credit card charging $18\%$ interest with a starting balance of $$500,$ it will take $2$ years

to pay off this debt $($ignoring fees or future charges$).$

A successful graduate donates $$100,000$ to her college to support scholarships. If this money in invested in an

account earning $6\%$ each year, the college can offer $$12,000$ of assistance to students each year for $12$ years.

To finance the purchase of a $$8000$ car, you can make payments of $$136$ each month for $6$ years $($at an interest rate

of $7\%.$

Consider the car loan in the previous question.

a$)$ What is the total amount paid over the life of the loan?

b$)$ How much interest is paid over the life of the loan?

c$)$ Suppose you invest in an ordinary annuity to purchase this car. How much should you deposit each month in an

account earning $3\mathrm{.}5\%$ interest to pay for the car in $6$ years?

d$)$ What is the total amount deposited in the ordinary annuity in part c$.?$