Heather lends a friend $18,000 for which her friend will repay him $36,000 at the end of 11 years. What interest rate is Heather charging her friend? (Round to 2 decimal places) 

2. What is the present value of an annuity of $140 received at the end of each year for 12 years? Assume a discount rate of 8%. The first payment will be received one year from today (round to nearest dollar). 

3. You decide you want your child to be a millionaire. You have a daughter today and you deposit $59,000 in an investment account that earns 7.5% per year. The money in the account will be distributed to your daughter whenever the total reaches $3,750,000. How old will your daughter be when she gets the money (rounded to the nearest year)? 

4. An investment is expected to yield $700 in three years, $800 in five years, and $900 in seven years. What is the present value of this investment if our opportunity rate is 6%? 

5. Molly would like to know the monthly payment on the following two loans: 

a) $44,000, 3.9% interest rate, 96 months 

b) $44,000, 3.9% interest rate, 60 months 

Answer rating: 100% (QA)

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