Determine the present value now of an investment of $3,000 made one year from now and an additional $3,000 made two years from now if the annual discount rate is 4%. 

 

11) What is the present value of a loan that calls for the payment of $500 per year for six years if the discount rate is 10% and the first payment will be made one year from now? How would your answer change if the $500 per year occurred for ten years?

12) Determine the annual payment on a $500,000, 12% business loan from a commercial bank that is to be amortized over a five-year period. 13) Determine the annual payment on a $15,000 loan that is to be amortized over a four-year period and carries a 10% interest rate. Also, make a loan amortization schedule for this loan.

14) You are considering borrowing $150,000 to purchase a new home.

Calculate the monthly payment needed to amortize an 8%, fixed-rate, 30-year mortgage loan. Calculate the monthly amortization payment if the loan in (a) was for 15 years.

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