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Annuities Due, Number of Periods, Interest Rates, Future Values

Calculating Annuities Due

You want to buy a new sports car from Muscle Motors for $32,000. The contract is in the form of a 72-month annuity due at a 7.75 percent APR (compounded monthly). Your monthly payment will be $? . (Round your answer to 2 decimal places, e.g. 32.16.)

Calculating the Number of Periods

At 12 percent interest, it would take years to double your money, and years to quadruple it. (Round your answer to 2 decimal places, e.g. 32.16.)

Calculating Interest Rates and Future Values

In 1895, the winner of a competition was paid $180. In 2006, the winner's prize was $2,568,000. This is a percent (Do not include the percent sign (%). Round your answer to 2 decimal places, e.g. 32.16.) increase in the winner's prize over this period. If the winner's prize increases at the same rate, it will be $ in 2040. (Do not round your intermediate values. Round your answer to the nearest whole number, e.g. 32.)

Solution Summary

This solution involves calculations for annuities due, number of periods, interest rates, and future values.

$2.19