Please answer the following questions:

Question 7 (1 point) This is an Annuity question. You have purchased a car for $40,700 and taken a loan that is to be repaid in 60 equal payments beginning next month. The interest rate charged is 0.50% monthly. What are your monthly payments? Question 8 (1 point) This is a Growing perpetuity formula. The stock of a firm will pay a dividend of $5.9 a year from now. The dividend paid by the firm will increase at a rate 2% every year. The dividends are discounted at a rate of 9.60% every year. What is the price of the stock today? Your Answer: Question 9 (1 point) You are analyzing the prospects of installing cost saving machinery. You have the following information: The machinery will cost $68,000 and will be depreciated straight line (equal amounts) over 4 years. The machinery will save $32,000 a year. The machinery will occupy space that would otherwise have been rented for $10,000 a year (before taxes deducted). The tax rate is 40%. (Hint: First calculate the net increase in income to be taxed taking into account savings, depreciation and opportunity cost of rentable space) What will be the increase in taxes per year from installing the machinery? (Your answer should be a positive number.) Your Answer: Question 10 (1 point) -If the pension plan invests $9,500,000 today in US Treasury bonds (riskless investment with | guaranteed return) at an interest rate of 3.30 percent a year, how much will it have by the end of year 8? Your Answer: Your