PLEASE DO QUESTIONS 3 AND 7

SECTION 6.4 PROBLEM SET: PRESENT VALUE OF AN AN For the following problems, show all work. R 1) Shawn has won a lottery paying him $10,000 per month for the next 20 years. He'd rather have the whole amount in one lump sum today. If the current interest 2 rate is 8.2%, how much money can he hope to get? 3) You determine that you can afford $250 per month for a car. What is the maximum ] amount you can afford to pay for a car if the interest rate is 9% and you want to . repay the loan in 5 years? 5) If the $200,000 loan in the previous problem is financed over 15 years rather than 30 years at 10%, what will the monthly payment be? 7) The Gomez family bought a house for $450,000. They paid 20% down and amortized the rest at 5.2% over a 30-year period. Find their monthly payment. 9) A firm needs a piece of machinery that has a useful life of 5 years. It has an option of leasing it for $10,000 a year, or buying it for $40,000 cash. If the interest rate is 10%, which choice is better? 11) Vijay's't_uition at college for the next year is $32,000. His parents have decided to pay the tuition by making nine monthly payments. If the interest rate is 6%, what is the monthly payment