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  3. 1.assume you have a total of $38,500 to invest and

1.Assume you have a total of $38,500 to invest and want to receive an annuity...

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Accounting

1.Assume you have a total of $38,500 to invest and want to receive an annuity of $5,000 for 20 years.

What interest rate do you have to earn on the $38,500 investment in order to receive the annual payments? (Round your answer to 2 decimal places. For example, enter .1234 as 12.34)

2.

Larry Davis borrows $73,000 at 12 percent interest toward the purchase of a home. His mortgage is for 30 years.

a. If Larry decides to make annual payments, how much will they be? (Enter your answer as a positive number rounded to 2 decimal places.)

b. How much interest will he pay over the life of the loan? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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