$1.$ You borrow $$20,000$ to finance the purchase of a new car. The loan is for $6\%$ interest annual, and the loan is paid monthly over a $10$ year period. What is the monthly loan payment that you have to make?

$2.$ You wish to make a down payment on a house at the end of five years. At $6\%$ interest annual, what amount must you place in the bank each month to accumulate the $$50,000?$

$3.$ A nuclear waste storage facility will reduce health risks in perpetuity, valued in the amount of $$1,000,000$ per year. The annual operating costs of the facility are $$200,000$ in perpetuity. The discount rate is $8\%.$ Question: how high could the initial investment cost be for this investment to have an NPV of at least zero?

$1.$ Monthly loan amount $\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$2.$ Monthly saving amount $\_\_\_\_\_\_\_\_\_\_\_\_$

$3.$Break$-$even$$ initial investment cost $\_\_\_\_\_\_\_$

ONLY USE DISCOUNT FACTOR FORMULA

SOULUTIONS MUST BE PRODUCED USING FORMULAS, OR GENERATED USING COMPUTED DISCOUNT FACTORS AS SHOWN IN THE CLASS VIDEOS FOR THE FINANCE CLASSES.

YOU WILL GET NO CREDIT FOR SOLUTIONS PRODUCED USING EXCEL FORMULAS FOR NPV$,$ IRR, OR ANNUITY PRESENT VALUES.