Question: a) suppose you signed a contract for a special assignment over the next 6 years. You will be paid $22,656 at the end of each

a) suppose you signed a contract for a special assignment over the next 6 years. You will be paid $22,656 at the end of each year. If your required rate of return is 16% what is the contract worth today?

b) You need a loan to purchase new equipment. The loan will be paid off over 11 years with payments made at the end of every quarter. If the state annual rate is 06.00% and quarterly payments are $159 what is the load amount?

c) You would like to purchase a car for $19,205. If the loan is 08.00% financed over 5 years, what will the monthly payment be?

d) What is the most that you would pay for investment that promises to pay $16,946 a year forever with the first payment starting one year from now? Assume that the require rate of return is 09.00%

e) A loan has stated annual rate of 07.00%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest?

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