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1 . You borrow $ 2 0 , 0 0 0 to finance the purchase of a new car. The loan is for 6 %

1. You borrow $20,000 to finance the purchase of a new car. The loan is for 6% interest annual, and the loan is paid monthly over a 10 year period. What is the monthly loan payment that you have to make?
2. You wish to make a down payment on a house at the end of five years. At 6% interest annual, what amount must you place in the bank each month to accumulate the $50,000?
3. A nuclear waste storage facility will reduce health risks in perpetuity, valued in the amount of $1,000,000 per year. The annual operating costs of the facility are $200,000 in perpetuity. The discount rate is 8%. Question: how high could the initial investment cost be for this investment to have an NPV of at least zero?
1. Monthly loan amount ______________
2. Monthly saving amount ____________
3.Break-even initial investment cost _______

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