Parker Posie wants to determine how much she must deposit today at 14% interest to provide four withdrawals of $26,000 at the end of each year, beginning five years from now. This is an example of the present value of
A. an ordinary annuity.
B. an annuity due.
C. a compound annuity due.
D. a deferred ordinary annuity.
Answer: D
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Answer the question.You currently drive 240 miles per week in a car that gets 16 miles per gallon of gas. You are considering buying a new fuel-efficient car for $13,000 (after trade-in on your current car) that gets 40 miles per gallon. Insurance premiums for the new and old car are $800 and $600 per year, respectively. You anticipate spending $1400 per year on repairs for the old car and having no repairs on the new car. Assume gas costs $3.50 per gallon. Over a five-year period, is it less expensive to keep your old car or buy the new car? By how much?
A. the new car is $1020 less expensive B. the old car is $1190 less expensive C. the new car is $1190 less expensive D. the old car is $1020 less expensive
You need a loan of $100,000 to buy a condo. Calculate your monthly payments and total closing costs for each choice.Choice 1: 30-year fixed rate at 4% with closing costs of $1194 and no pointsChoice 2: 20-year fixed rate at 3.5% with closing costs of $1194 and 2 points
A. Choice 1: $421.10; $1194 Choice 2: $586.19; $2388 B. Choice 1: $605.98; $1194 Choice 2: $449.04; $2944 C. Choice 1: $543.49; $1194 Choice 2: $474.36; $2994 D. Choice 1: $477.42; $1194 Choice 2: $579.96; $3194
Provide an appropriate response.What type of spending is easiest for the government to control?
A. Entitlement spending B. Discretionary spending C. Medicare D. Interest payments on the debt
Choose the equation that matches the graph.
A. (x - 5)2 + (y - 1)2 = 9 B. (x - 5)2 + (y - 1)2 = 1.732 C. (x - 5)2 + (y - 1)2 = 3 D. (x - 5)2 - (y - 1)2 = 9