Shorter Problems$1.$

You borrow $$20,000$ to finance the purchase of a new car. The loan is for $6\%$ interestannual, and the loan is paid monthly over a $10$ year period. What is the monthly loanpayment that you have to make?

$2.$ You wish to make a down payment on a house at the end of five years. At $6\%$ interestannual, what amount must you place in the bank each month to accumulate the $$50,000?3.$ A nuclear waste storage facility will reduce health risks in perpetuity, valued in theamount of $$1,000,000$ per year. The annual operating costs of the facility are $$200,000$ inperpetuity. The discount rate is $8\%.$

Question: how high could the initial investment costbe for this investment to have an NPV of at least zero?