Problem 18 Intro Google has made an offer to buy your start-up. As long as you keep working for the firm, Google promises to pay you the following amounts over the next 5 years, at the end of each year. Year Payment 1 500,000 2 600,000 3 700,000 4 700,000 5 750,000 You think that your company is worth $200,000 more than the total offered value. You also want to receive $1,000,000 right now and prefer a monthly payment to an annual payment for the remaining amount, with the first monthly payment occuring one month from now and the last one 5 years from now. The annual interest rate is 8% (EAR). IB Attempt 1/10 for 10 pts. Part 1 If Google agrees to your terms, how much can you expect per month? 0+ decimals Submit Problem 19 Intro You took out some student loans in college and now owe $5,000. You consolidated the loans into one amortizing loan, which has an annual interest rate of 5% (AIR), compounded monthly Part 1 Attempt 1/10 for 10 pts. If you make monthly payments of $200, how many months will it take to pay off the loan? Fractional values are acceptable. 11+ decimals Submit Problem 20 Intro You took out a fixed-rate mortgage for $317,000. The mortgage has an annual interest rate of 6% (AIR) and requires you to make a monthly payment of $2,675. Attempt 1/10 for 10 pts. Part 1 How many months will it take to pay off the mortgage? b+ decimals Submit Problem 25 Intro You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $849.67 every month for the next 12 months. Since you pay $849.67 * 12 = $10,196 in total, the dealer claims that the loan's annual interest rate is (10.196-10,000)/10,000 = 1.961%. IB Attempt 1/10 for 10 pts. Part 1 What is the actual effective annual rate? 14+ decimals Submit Show all parts