A local bank advertises the following deal: Pay us $100 at the end of each year for 10 years and then we will pay you (or yo beneficiaries) $100 at the end of each year forever. a. Calculate the present value of your payments to the bank if the interest rate is 8.75%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value b. What is the present value of a $100 perpetuity deferred for 10 years if the interest rate is 8.75%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value c. Is this a good deal? No Yes

Find the interest rates earned on each of the following. Round your answers to the nearest whole number. a. You borrow $700 and promise to pay back $777 at the end of 1 year. % b. You lend $700 and the borrower promises to pay you $777 at the end of 1 year. % c. You borrow $88,000 and promise to pay back $550,376 at the end of 15 years. % d. You borrow $20,000 and promise to make payments of $6,687.60 at the end of each year for 5 years. %

You want to save (deposit) $6,631 per year, starting next year, to make a down payment of $79,593 on a vacation home. If you can earn 4.24 percent on your investment, for how many years will you have to make deposits? Answer to 4 decimals.

A friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is offering a 6.3% interest rate on deposits and​ loans: How much would you have in one year if you deposited the $51 ​instead? How much money could you borrow today if you pay the bank $54 in one​ year?