The following situations should be considered independently. (FVof $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)(Use appropriate factor(s) from the tablesprovided.)
1. John Jamison wants to accumulate $80,170 for adown payment on a small business. He will invest $34,000 today in abank account paying 10% interest compounded annually. Approximatelyhow long will it take John to reach his goal?
2. The Jasmine Tea Company purchased merchandisefrom a supplier for $48,016. Payment was a noninterest-bearing noterequiring Jasmine to make seven annual payments of $8,000 beginningone year from the date of purchase. What is the interest rateimplicit in this agreement?
3. Sam Robinson borrowed $22,000 from a friend andpromised to pay the loan in 12 equal annual installments beginningone year from the date of the loan. Sam’s friend would like to bereimbursed for the time value of money at an 11% annual rate. Whatis the annual payment Sam must make to pay back his friend?
