Question: Suppose you signed a contract for a special assignment over the next 4 years. You will be paid $123 at the end of each year.

Suppose you signed a contract for a special assignment over the

Suppose you signed a contract for a special assignment over the next 4 years. You will be paid $123 at the end of each year. If your required rate of return is 6%, what is this contract worth today? 2. You need a loan to purchase new equipment. The loan will be paid off over 5 years with payments made at the end of every quarter. If the stated annual rate is 8% and quarterly payments are 250, what is the loan amount? 3

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