1. Phil just sold his farm to his nephew. The terms of the sale are that the nephew will pay Phil $500/acre each year for the next 30 years. What is the equivalent sales price that Phil is receiving for his land, given in today's dollars, if his discount rate is 3%? Explain your answer, including any TVM formulas you used. I (20 pts.) 2. You are considering buying a new car from a local dealer (Dealer 1) for $35,000. Dealer 1 will finance the entire purchase price at 2% interest over 6 years. Interest is compounded monthly and you must make monthly payments. What is the most you should be willing to offer another dealer (Dealer 2) for the same car who is offering a financing plan with a 4% interest rate over 6 years? Hint: If the loan payments are the same you can assume you would be indifferent between buying from the two dealers. Explain your answer, including any TVM formulas you used. Use the "Q2' worksheet in the Excel template. (70 pts.) 3. As owner of the Illini Tap you are considering an investment in upgrading the bar's entertainment systems. o mat Painter Fent d Alignment Number Styles fx 500 E F H P r 500.00 3% 30 Land Price Briefly describe how you solved this problem here. What TVM formula(s) did you use? Q1 OZ 030 e Type here to search