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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jeff jeffy answered 1 year ago

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