Considering an annuity, You are considering an annuity that

Considering an annuity

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Reference no: EM131011618

1) You are considering an annuity that will pay you $1300 per year for 25 years, with the first payment made 15 years from now. How much are you willing to pay for the annuity if the interest rate is 2%? Round your answer to two decimal places.

2) If you save $250 at the end of each month for the next 2 years, how much will you have in 2 years? Assume that you can earn 6% per year (APR), compounded monthly. Round your number to two decimal places.

3) You are thinking about buying a car, and a local bank is willing to lend you $15,000 to buy the car. Under the terms of the loan, it will be paid off over 5 years with an APR of 6%. What would be the monthly payment on the loan? Round your number to two decimal places.

Reference no: EM131011618

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