Using the Compound Interest Tables, Answer Each of the Following

question 20

Essay

Using the compound interest tables, answer each of the following questions.
Required:
a. Jane has a $35,000 bank loan that she wishes to pay off in five equal annual payments with
12% interest. If the first payment is due one year from today, what will be the amount of the annual payment necessary?
b. Joan wants to borrow some money from the bank to start a small business. Joan can afford to pay off the loan in 15 annual installments of $9,500. The bank charges an annual interest rate of 12%. If Joan makes the first payment one year from the date of the loan, how much can Joan borrow?

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Definitions:

Whales

Large marine mammals belonging to the order Cetacea, known for their intelligence, aquatic adaptation, and often large size.

Major Premise

In a categorical syllogism, the premise in which the major term appears.

Syllogism

A form of deductive reasoning that consists of two premises followed by a conclusion, based on the relationship between the premises.

Mammals

Warm-blooded vertebrates characterized by the presence of mammary glands which females use to nourish their young.