Suppose you take out a car loan that requires you to pay $10,000 now, $4,000 at the
Question:
Suppose you take out a car loan that requires you to pay $10,000 now, $4,000 at the end of year 1, and $7,000 at the end of year 2. The interest rate is 2% now and increases to 8% in the next year. What is the present value of the payments? Enter your response below rounded to 2 decimal places.
An investment promises to pay you $6,000 per year forever with the first payment at time 1. If alternative investments of similar risk earn 3.66% per year, determine the maximum you would be willing to pay for this investment. Enter your response below (rounded to 2 decimal places).
Suppose you will receive payments of $17,000, $13,000, and $1,000 in 3, 4, and 9 year(s) from now, respectively. What is the total future value of all payments 10 years from now if the interest rate is 10%? Enter your response below rounded to 2 decimal places.
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin