PLS help with this several questions. You can just write the answer

1.The Highway Department sets aside $150 million for maintenance costs. The maintenance cost at the end of the first year of operation is $12 million and is expected to increase 3.5% each year after that. If the expected rate of return is 9.5% per year, how long will the $150 million last?

2. New financial regulations have forced banks to reveal the effective annual interest rate they charge on credit card balances. This was introduced because customers facing 33% annual interest rates with weekly compounding, gravely underestimated the high effective interest rates that they were being charged. What is the effective annual interest rate?

3. A store offers you an unbelievably good deal on a premium washing machine, advertised as being worth P=$1300. You can buy the machine in N=7 monthly installments of A=P/N at a 0% rate of interest! However, it seems that this deal is a little too good to be true. A friend warns you that you are actually paying interest at an annual rate of 37%! What is the actual value of the washing machine today?

4. Suppose you owe $1150 on your credit card. The annual percentage rate (APR) is 17%, compounded monthly. The credit card company says your minimum monthly payment is $20 (A1).

a. If you make only this minimum payment, how long will it take for you to repay the $1150 balance (assuming no more charges are made)?

b. If you make the minimum payment plus $7 (A2) extra each month (for a total of A1+A2), how long will it take to repay the $1150 balance?

Answer rating: 100% (QA)

1The Highway Department sets aside 150 million for maintenance costs The maintenance cost at the end of the first year of operation is 12 million and is expected to increase 35 each year after that If ... View the full answer