This assignment covers the material in: 2.1 Simple Interest 2.2 Compound Interest 2.3 Annuities 2.4 Amortization...

This assignment covers the material in: 2.1 Simple Interest 2.2 Compound Interest 2.3 Annuities 2.4 Amortization

33A. Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $35,000, so he figures he should get enough insurance to provide his wife and new baby with that amount each year for the next 35 years. If the long-term interest rate is 6.6%, what is the present value of John's future annual earnings? (Round your answer to the nearest cent.)
_______$

Rounding up to the next $50,000, how much life insurance should he buy? (Round your original answer to the nearest $50,000).

_______$

B. A MasterCard statement shows a balance of $540 at 13.6% compounded monthly. What monthly payment will pay off this debt in 1 year 9 months? (Round your answer to the nearest cent.) ______$

Expert Solution

Colby Messinger answered 2 years ago

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