Please answer all 3 questions.

9. Kangaroo Autos is offering free credit on a new $14,600 car. You pay $1,100 down and then $450 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,100 off the list price.

a. If the rate of interest is 0.92% a month, calculate the present value of the payments to Kangaroo Autos. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

10. You estimate that by the time you retire in 35 years, you will have accumulated savings of $3.0 million.

a. If the interest rate is 10.0% and you live 15 years after retirement, what annual level of expenditure will those savings support? (Do not round intermediate calculations. Enter your answer in whole dollars rounded to 2 decimal places.)

b. Unfortunately, inflation will eat into the value of your retirement income. Assume a 6% inflation rate and work out a spending program for your $3.0 million in retirement savings that will allow you to increase your expenditure in line with inflation. What will be your expenditure amount in real terms for each year of your retirement? (Do not round intermediate calculations. Enter your answer in whole dollars rounded to 2 decimal places.)

13. A leasing contract calls for an immediate payment of $103,000 and nine subsequent $103,000 semiannual payments at six-month intervals. What is the PV of these payments if the annual discount rate is 12%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)