1. Richard Stokes borrows $75,000 to buy new equipment for his factory. It's a 3 year...

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1. Richard Stokes borrows $75,000 to buy new equipment for his factory. It's a 3 year loan with 9 percent interest and will be paid with fixed annual payments. Prepare an amortization table. Show all of your calculations. 2. Investment A offers you a payment of $5,500 for 9 years and investment B offers $8,000 for 5 years. If the interest rate is i. 6% ii. 22% Calculate and compare the PV of each investment. 3. An investment has the following cash flows. Calculate the Future values at the end of the fourth year if the discount rate is 8% Cash flows Year 1 Year 2 Year 3 Year 4 700 900 1400 2000 4. An investment offers $7000 per year for 15 years with the first payment occurring one year from now. The required rate of return is 9% i.what is the value of an investment with payments for 15 years? iii. What is the value of the investment if payments occur forever? 5. Calculate the EAR for the following cases: APR 9% 13% 16% 19% Number of times Compounded quarterly monthly daily semiannually 6. You want to buy a new boat for $69500. The bank accepted to offer you a loan with APR of 8.6%. The payments will be made monthly for 5 years. i. What will be the monthly payments? ii. Calculate the EAR 1. Richard Stokes borrows $75,000 to buy new equipment for his factory. It's a 3 year loan with 9 percent interest and will be paid with fixed annual payments. Prepare an amortization table. Show all of your calculations. 2. Investment A offers you a payment of $5,500 for 9 years and investment B offers $8,000 for 5 years. If the interest rate is i. 6% ii. 22% Calculate and compare the PV of each investment. 3. An investment has the following cash flows. Calculate the Future values at the end of the fourth year if the discount rate is 8% Cash flows Year 1 Year 2 Year 3 Year 4 700 900 1400 2000 4. An investment offers $7000 per year for 15 years with the first payment occurring one year from now. The required rate of return is 9% i.what is the value of an investment with payments for 15 years? iii. What is the value of the investment if payments occur forever? 5. Calculate the EAR for the following cases: APR 9% 13% 16% 19% Number of times Compounded quarterly monthly daily semiannually 6. You want to buy a new boat for $69500. The bank accepted to offer you a loan with APR of 8.6%. The payments will be made monthly for 5 years. i. What will be the monthly payments? ii. Calculate the EAR

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1 To prepare an amortization table Ill need to calculate the annual payment interest principal and r... View the full answer