Determine what is the amount of each payment

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You borrow $7,030 to buy a car. The terms of the loan call for monthly payments for 7 years a rate of interest of 8 percent. What is the amount of each payment?

The Good Life Insurance Co. wants to sell you an annuity which will pay you $640 per quarter for 25 years. You want to earn a minimum rate of return of 4.9 percent. What is the most you are willing to pay as a lump sum today to buy this annuity?

Reference no: EM13328469

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