Question

please do numbers 3 and 4 with a formula. idk how to do it

ng Urdinary annuities: a. $400 per year for ten years at 10% FV ( tr) b. $200 per year for 5 years at 5% = 200 (21. 10) = 16,374.90 c. $400 per year for 5 years at 0% 8 No heresy ooxs = (2,000 a. $6,374.96; $1,105.12; $2000 rate - 200cc.es). 1-14.105.12 3. While Mary Corens was a student at Loyola Marymount University, she borrowed $12,000 in student loans at an annual interest rate of 9%. If Mary repays $1,500 per year, how long, to the nearest year, will it take her to repay the loan? a. 15 years 4. You need to accumulate $10,000. To do so, you plan to make deposits of $1.250 per year, with the first payment being made one year from today, in a bank account that pays 12% annual interest. Your last deposit will be less than $1,250 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal, and how large will the last deposit be? a. 6 years, $1,106.01 a) 77-citro) - 250D (01.08) 0 - 1 5. Given the following information, a. Annual annuity payment= $2,500 b. Annual interest rate = 8% c. Deposit period = 10 years Calculate the future value of the annuity assuming that it is 0.08. = 136,216.41)

Answer 1

Answer 3

PV=$12000

A=$1500

r=9%

Hence n can be calculated using PV=A**1-(1+t)^-n)/r

Or 12000=1500*(1-(1+9%)^-n/9%

Or, 12000/1500*0.09=1-(1.09)^-n

Or, 0.72=1-(1.09^-n)

Or, 1.09^-n=1-0.72

Or, 1.09^-n=0.28

Or, -nlog 1.09=log 0.28

Or, -n*0.0374=-0.5528

Or n=0.5528/0.0374=14.77 or 15 years

Hence answer is 15 years