1)You purchase an annuity investment that pays you a lump sum amount of $289,284 at...
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Accounting
1)You purchase an annuity investment that pays you a lump sum amount of $289,284 at the end of the term. You must make $20,000 quarterly payments until the end of the term. If you earn an interest rate of 2%, how many of these quarterly payments must you make?
2) A bank lends money to a firm on 01/01/2010. According to the lending agreement, the bank will receive the following payments:
06/30/2010 - $2,300,000
12/31/2010 - $1,300,000
06/30/2011 - $5,700,000
12/31/2011 - $3,400,000
06/30/2012 - $360,000
12/31/2012 - $560,000
If the annual interest rate on the loan is 3.80%, how much did the firm borrow?
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