Alan Taylor is settling a $20,370 loan due today by making 6 equal annual payments of...

Alan Taylor is settling a $20,370 loan due today by making 6 equal annual payments of $4,954.50.

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Determine the interest rate on this loan, if the payments begin one year after the loan is signed. (Round answer to 0 decimal places, e.g. 8%.)

Interest rate

%

Chris Taylor is settling a $18,330 loan due today by making 6 equal annual payments of $4,332.78.

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What payments must Chris Taylor make to settle the loan at an interest rate of 11%, but with the 6 payments beginning on the day the loan is signed? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Payments

$

For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor.

1. In a future value of 1 table:

	Annual Rate	Number of Years Invested	Compounded	(a) Rate of Interest		(b) Number of Periods
a.	12%	10	Annually	enter percentages	%	enter the number of periods
b.	12%	6	Quarterly	enter percentages	%	enter the number of periods
c.	8%	18	Semiannually	enter percentages	%	enter the number of periods

2. In a present value of an annuity of 1 table: (Round answers to 1 decimal place, e.g. 458,58.1.)

	Annual Rate	Number of Years Invested	Number of Rents Involved	Frequency of Rents	(a) Rate of Interest		(b) Number of Periods
a.	11%	27	27	Annually	enter percentages	%	enter the number of periods
b.	11%	15	30	Semiannually	enter percentages	%	enter the number of periods
c.	8%	7	28	Quarterly	enter percentages	%	enter the number of periods

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Expert Solution

jeff jeffy answered 1 year ago

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