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