I need help with these few questions on my homework please :)

1. How much money would you need to pay to receive a payout annuity of $8,503.05 annually for 10 years, assuming your money earns 7.5% compounded annually? Assume that your payments increase annually by a 3% COLA.

Answer___ Units___

2.You are purchasing a Yugo SUV for $9500. You have a downpayment of $800, and will finance the rest over 4 years at 9.0 % add-on interest. What is your monthly payment?

Answer___ Units___

3.You buy a car and need to finance $2,419 on a simple-interest amortised loan with 36 monthly payments and an interest rate of 5.2% . Find the monthly payment.

Answer___ Units___

Any help will help, thank you!

2. P = Po*r*t/(1-(1+r)^-t)

Po = 9500 - 800 = $8700.

r = (9%/12)/100% = 0.0075 = Monthly %
rate expressed as a decimal.

P = (8700*0.0075*48)/(1-1.0075)^-48 =
$10,392.

P/t = 10,392/48 = $216.50/mo.

3. P = Po + I = Po + Po*r*t.
P = 2419 + 2419*0.052*36 = $2796.36.

P/t = 2796.36/36 = $77.68/mo.

Sure, I'd be happy to help you with your homework questions!

1. To calculate the amount of money you would need to pay upfront to receive a payout annuity, you can use the present value of an annuity formula. The formula is:

PV = P * (1 - (1 + r)^(-n)) / r

Where:
PV = Present Value (the amount you need to pay upfront)
P = Annual payout amount ($8,503.05 in this case)
r = Interest rate per period (7.5% or 0.075 in decimal form)
n = Number of periods (10 years in this case)

Now, since the payments increase annually by a 3% COLA (cost of living adjustment), you need to calculate the future value (FV) of the annuity first. You can use the future value of an annuity formula:

FV = P * ((1 + g)^n - 1) / g

Where:
FV = Future Value of the annuity
P = Annual payout amount ($8,503.05 in this case)
g = Growth rate (3% or 0.03 in decimal form)
n = Number of periods (10 years in this case)

Once you have the future value (FV) of the annuity, you can use the present value formula mentioned earlier to find the amount you would need to pay upfront (PV).

Answer: To find the answer, you will need to perform the calculations using the formulas mentioned above.

2. To calculate your monthly payment on a loan with add-on interest, you can use the following formula:

Monthly Payment = (Loan Amount + Total Interest) / Number of Months

Where:
Loan Amount = Total cost of the car minus the downpayment ($9,500 - $800 = $8,700 in this case)
Total Interest = Loan Amount * (Interest Rate/100) * Number of Years (4 years in this case)
Number of Months = Number of Years * 12 (4 years * 12 = 48 months in this case)
Interest Rate = 9.0%

Answer: To find the answer, you will need to perform the calculations using the formula mentioned above.

3. To calculate the monthly payment on a simple interest amortized loan, you can use the following formula:

Monthly Payment = Loan Amount / (Number of Payments * (1 + (Interest Rate/100))

Where:
Loan Amount = $2,419 in this case
Number of Payments = 36 monthly payments
Interest Rate = 5.2%

Answer: To find the answer, you will need to perform the calculations using the formula mentioned above.

I hope this explanation helps you solve your homework questions! Let me know if you need further clarification.