How much does need to borrow to purchase a yacht

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Annuity Interest rate ?(Loan amortization)

Question 1: Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $13365.85 that will pay them $2000 per year for 10 years. They don't have the slightest idea what return they would be making on their investment of $13365.85. What rate of return would they be earning? Round to two decimal places

Question 2: Loan Amortization - On December? 31, Beth Klemkosky bought a yacht for $110,000. She paid $16,000 down and agreed to pay the balance in 9 equal annual installments that include both the principal and 8 percent interest on the declining balance. How big will the annual payments? be?

Question 3: On December 31, Beth Klemkosky bought a yacht for $110,000 and paid $16,000 down, how much does she need to borrow to purchase a yacht?

Reference no: EM132652094

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