Question: If the five-year discount factor is d, what is the present value of $1 received in five years? d 1/(1+d)5 1/d 5(1+d) QUESTION 30 If

If the five-year discount factor is d, what is the present value of $1 received in five years? d 1/(1+d)5 1/d 5(1+d) QUESTION 30 If the effective annual rate of interest is known to be 18% on a debt that has payments every two months, what is the annual percentage rate? 14.28% 16.78% 12.03% 20.43% QUESTION 31 Someone offers to buy your car for four, equal annual payments, beginning 3 years from today. If you think that the present value of your car is $10,000 and the interest rate is 10%, what is the minimum annual payment that you would accept? (hint: draw a clear time line first) 3,817.2 2,154.7 3,021.1 4,198.9

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