1 Kimberly is considering an investment of $2,000 each year for 15 years. The investment will pay 7 percent interest. How much will this investment be worth at the end of the 15 years?

$

Answer

.($xxxxx.xx)

2 Dustin is considering an investment that will pay $3,000 a year for 10 years, starting 1 year from today. How much should Dustin pay for this investment if he wishes to earn a 10 percent rate of return?

$

Answer

. ($xxxxx.xx)

3 Corner Restaurant is considering a project with an initial cost of $211,600. The project will not produce any cash flows for the first year. Starting in Year 2, the project will produce cash inflows of $75,000 a year for eight years. The firm has assigned it a discount rate of 12.6 percent. What is the project's net present value?

$

Answer

. ($xxxxx.xx)

4 Today, you are borrowing $9,800 to purchase a car. What will be your monthly payment if the loan is for four years at 6.45 percent APR?

$

Answer

($xxx.xx)

5 The manager of Bob's Yacht Sales has approved your application for credit. The maximum payment she approved is $80 a month for 48 months. The APR is 12.5 percent. What is the maximum price of a boat you can afford to purchase using the credit offered by the store?

$

Answer

($xxxx.xx)

Please give Answer of all of questions