Meadow Brook Manor would like to buy some additional land and build a new assisted living center

You are considering an annuity which costs $160,000 today. The annuity pays $17,500 a year at an annual interest rate of 7.50 percent. What is the length of the annuity time period?    A.  13 years B.  14 years C.  15 years D.  16 years E.  17 years

54.

Today, you borrowed $6,200 on your credit card to purchase some furniture. The interest rate is 14.9 percent, compounded monthly. How long will it take you to pay off this debt assuming that you do not charge anything else and make regular monthly payments of $120?    A.  5.87 years B.  6.40 years C.  6.93 years D.  7.23 years E.  7.31 years   83.14 months/12 = 6.93 years

55.

Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $20.5 million. The CEO of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for the entire construction project. Management has decided to save $1.2 million a quarter for this purpose. The firm earns 6.25 percent, compounded quarterly, on the funds it saves. How long does the company have to wait before expanding its operations?    A.  3.09 years B.  3.82 years C.  4.46 years D.  4.82 years E.  4.91 years   t = 15.26003 quarters/4 = 3.82 years