ANSWERS
                               to annuities and loans homework

Answers to #1, 2, 3, and 4 were rounded to the nearest thousand dollars.
Answers to #5, 6, 7, and 8 were rounded to the nearest cent.
Answers to #9 and #10 were rounded to the nearest hundred dollars.

 1.  $100 a month at  3%
     (a) for 10 years:	$   14,000
     (b) for 25 years:  $   45,000
     (c) for 40 years:  $   93,000

 2.  $100 a month at  6%
     (a) for 10 years:	$   16,000
     (b) for 25 years:  $   69,000
     (c) for 40 years:  $  199,000

 3.  $100 a month at  9%
     (a) for 10 years:	$   19,000
     (b) for 25 years:  $  112,000
     (c) for 40 years:  $  468,000

 4.  $100 a month at 12%
     (a) for 10 years:	$   23,000
     (b) for 25 years:  $  188,000
     (c) for 40 years:  $1,176,000


 5.  $1,000,000 / ( ( 1.007 ^ 360 - 1 ) / 0.007 ), or about $618.38 a month


 6.  $2,000,000 / ( ( 1.00875 ^ 480 - 1 ) / 0.00875 ), or about $271.41 a month


 7.  (a) $16,000*(1.0045)^36 / ( ( 1.0045 ^ 36 - 1 ) / 0.0045 ), or about $ 482.41 a month
     (b) $16,000*(1.0045)^60 / ( ( 1.0045 ^ 60 - 1 ) / 0.0045 ), or about $ 304.88 a month

 8.  (a) $125,000*(1.005)^180 / ( ( 1.005 ^ 180 - 1 ) / 0.005 ), or about $1054.82 a month
     (b) $125,000*(1.005)^360 / ( ( 1.005 ^ 360 - 1 ) / 0.005 ), or about $ 749.44 a month


 9.  $250 * ( ( 1.004 ^ 60 - 1 ) / 0.004 ) / (1.004)^60, or about $13,300

10.  (a) $800 * ( ( 1.0045 ^ 360 - 1 ) / 0.0045 ) / (1.0045)^360, or about $142,500
     (b) $800 * ( ( 1.0045 ^ 360 - 1 ) / 0.0045 ) / (1.0045)^360 / 0.80, or about $178,100