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You are borrowing money to buy a car. If you can make payments of $330 per month starting one month from now at an interest rate of 9%, how much will you be able to borrow for the car today if you finance the amount over 5 years? A. $9,538 B. $15,897 C. $19,077 D. $22,256 A business promises to pay the investor of $5,000 today for a payment of $1,250 in one year's time, $2,500 in two years' time and $2,500 in three years' time. What is the present value of this business opportunity if the interest rate is 5% per year? A. $741 B. $988 C. $309 D. $618 A 10% APR with quarterly compounding is equivalent to an EAR of A. 10.38% B. 10.00% C. 10.47% D. 9.81% A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of $1,846.88. What is the APR of this loan? A. 9.65% B. 7.65% C. 8.65% D. 6.65% A stock is expected to pay $1.95 per share every year indefinitely and the equity cost of capital for the company is 8.9%. What price would an investor be expected to pay per share ten years in the future? A. $32.87 B. $21.91 C. $43.82 D. $54.78 If the current rate of interest is 8%, then the future value (FV) of an investment that pays $1,300 per year and lasts 17 years is closest to: A. $26,325 B. $52,650 C. $61,425 D. $43,875