Question: a.PMT = $500 per month; N = 360 months; I = 8%. CalculatePV. b.You want to borrow money to buy a boat. You can affordpayments

a.PMT = $500 per month; N = 360 months; I = 8%. CalculatePV.

b.You want to borrow money to buy a boat. You can affordpayments of $100 per month. You expect the loan period to be fiveyears. Interest rates on boat loans are currently at 9% per year.How much can you afford to spend on the boat?

c.You want to buy a car. The salesman refuses to tell you theactual price of the car; he only tells you that the payment is$199.00 per month, the rate is 8% interest, and it is a five yearloan. Calculate the price of the car based on this information.

d.You can afford a loan payment of $800 per MONTH on a house.The loan is for 30 years. The rate is 5% annually. How much can youborrow today?

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