Question: Please show steps to solution using a FINANCIAL CALCULATOR 1. Calculate the annual payment that must be made if you would like to save up

Please show steps to solution using a FINANCIAL CALCULATOR

1. Calculate the annual payment that must be made if you would like to save up $50,000 by t=8. Assume you are making these payments at the beginning of the year. Assume the interest rate to be 3.8% per annum.

2. Calculate the present value of an annuity due which pays 500 every year for the next five years, if the interest rate is 5%.

3. You recently got promoted at your job. You have since decided to buy your dream car which costs $97,000. The car dealer tells you to pay 11,000 at the end of every year for the next 7 years after which you can take possession of the car at t=7. Given a market interest rate of 13%, is this a good deal?

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