Compute the amount that can be borrowed under each of the following circumstances: 1. A promise to

Question:

Compute the amount that can be borrowed under each of the following circumstances:
1. A promise to repay $90,000 seven years from now at an interest rate of 6%.
2. An agreement made on February 1, 2008, to make three separate payments of $20,000 on February 1 of 2009, 2010, and 2011. The annual interest rate is 10%.