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

For PACMAN game specification 2.1 Product Perspective 2.2 Product Functions 2.3 User Classes and Characteristics 2.4 ...

For PACMAN game specification 2.1 Product Perspective 2.2 Product Functions 2.3 User Classes and Characteristics 2.4 Operating Environment 2.5 Design and Implementation Constraints 2.6 Assumptions and Dependencies

Question: How does compound interest differ from simple interest?

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