Save Question 3 10 points How much money would you have to p

Save Question 3 (10 points) How much money would you have to pay each year in 8 equal payments, starting 2 years from today, to repay a $20,000 loan received from a relative today, if the interest rate is 8% per year? $3,758.62 $3,775.44 $3,800.95 $3,698.61 Save Question 4 (10 points) arly retirement 25 An industrial engineer is nlanning for h

Solution

Answer is $ 3758.62 Explanation: Amount borrowed 20000 Annuity Present value factor for 8 years starting from Yr-2 5.321 (Annuity Factor of Yr-9 - PVf of Yr -1 i.e. 6.2469-0.9259) Annual Instalment starting from Year-2 3758.692 (20000 / 5.321)