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1 . Suppose you signed a contract for a special assignment over the next 1 5 years. You will be paid 1 5 , 1

1.Suppose you signed a contract for a special assignment over the next 15 years. You will be paid 15,158 at the end of each year. If your required rate of return is 8.8%, what is this contract worth in today?
2. You need a loan to purchase new equipment. The loan will be paid off over 15 years with payments made at the end of every quarter. If the stated annual rate is 4.7% and quarterly payments are $112, what is the loan amount?
3.You would like to purchase a car for $5,826. If the car loan is 11.94% financed over 4 years, what will the monthly payments be for this car?
4.What is the most that you would pay for an investment that promises to pay $11,224 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 21.83%.
5.A loan has a stated annual rate of 5.08%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest? Please be sure to answer as a percentage.

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