1. Find the maximum price that you would be willing to pay today for the following stream of cash flows promised at the end of for years 1 through 6, respectively-- $5,000; $8,000; $10,000; $10,000; $10,000; $10,000. Assume that your required rate of return on this investment is 10%. $38,588.67 $35,055.40 $31,709.52 $39,884.49 $37,354.26 2. An investment promises the following stream of cash flows promised at the end of for years 1 through 6, respectively-- $5,000; $8,000; $10,000; $10,000; $10,000; $10,000. The investment is selling for $28,000 today. What is the rate of return implied by this investment? 17.18% 12.05% 14.54% 19.61% 22.32% 3. You borrow $80,000 today at an interest rate of 8% (APR). The loan must be paid back in equal monthly installments over a period of 10 years. Find the amount of the monthly installment. The first payment is due one month from today. $993.53 $437.29 $970.62 $691.35 $533.39 4. You borrow $80,000 today at an interest rate of 8% (APR). The loan must be paid back in equal monthly installments over a period of 10 years. The SECOND month's payment reduces the principal balance on the loan by: $449.07 $446.09 $440.20 $443.14 $437.29 5. You borrow $80,000 today at an interest rate of 8% (APR). The loan must be paid back in equal monthly installments over a period of 10 years. The lender agrees to lets you make monthly payments of $400 on this loan. What will be the required "balloon payment" at the end of the 10 years? $81,374.05 $170,749.63 $103,178.50 $73,178.41 $104,392.80