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11. Suppose you want to buy a car today for $30,000. You take out a bank loan to pay for the car with an interest
11. Suppose you want to buy a car today for $30,000. You take out a bank loan to pay for the car with an interest rate of 9%. The loan is to be repaid in 5 equal end of year installments. What is the yearly payment to the bank to pay off the loan in 5 years? O a) $7,712.77 O b) $6,000 c) $46,158.72 O d) $19,497.94 O e) None of the above 12. The present value of a lottery prize paying $120.000 each year for twenty years, discounted at a rate of 10 percent, with a first immediate payment is worth a) More than $3,000,000 b) Between $2,000,000 and $3,000,000 C) Exactly $2,400,000 d) Less than $1.200,000 million e) None of the above
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