Question

1) Carl is the beneficiary of a $22,000 trust fund set up for him by his grandparents. Under the terms of the trust, he is to receive equal installments from this fund at the end of each year over a 6-year period. If the fund earns interest at the rate of 9%/year compounded annually, what amount will he receive each year? Assume that the balance in the fund is zero after the last installment is received. (Round your answer to the nearest cent.)

2) A local moving service recently purchased a van by securing a loan with semiannual payments of $2900 per semiannual period for 8 years at 10% per year compounded semiannually. What was the purchase price of this van? (Round your answer to the nearest cent.)

Answer 1