Question: 1. Suppose you signed a contract for a special assignment over the next 11 years. You will be paid 21,572 at the end of each

1. Suppose you signed a contract for a special assignment over the next 11 years. You will be paid 21,572 at the end of each year. If your required rate of return is 6.25%, what is this contract worth in today?

2. You need a loan to purchase new equipment. The loan will be paid off over 10 years with payments made at the end of every quarter. If the stated annual rate is 11.46% and quarterly payments are $551, what is the loan amount?

3. You would like to purchase a car for $5,680. If the car loan is 6.53% financed over 6 years, what will the monthly payments be for this car?

4. What is the most that you would pay for an investment that promises to pay $12,595 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 6.7%.

5. A loan has a stated annual rate of 10.08%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest? Please be sure to answer as a percentage.

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