Nico makes annual end-of-year payments of $5,043.71 on a four-year loan with an

Question

Nico makes annual end-of-year payments of $5,043.71 on a four-year loan with an interest rate of 13 percent. The original principal amount was $24,462. $15,000. $ 3,092. $20,175. If a United States Savings bond can be purchased for $29.50 and has a maturity value at the end of 25 years of $100, what is the annual rate of return on the bond? Answer 5 percent 6 percent 7 percent 8 percent Which of the following is NOT an example of annuity cash flows? Answer Regular equal monthly rent payments. Equal annual deposits into a retirement account. The $50 of gasoline you put into your car every two weeks on payday. All of the examples above are annuity cash flows.

Explanation / Answer

5,043.71= Amtx1.13^4

$ 3,092= 5,043.71/1.13^4

Amount= $ 3,092

100= 29.50x(1+r)^25

r=5%

The $50 of gasoline you put into your car every two weeks on payday.

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