11. You want to buy a car and a local bank will lend you $26,000. The loan will be fully amortized over 4 years, and the nominal interest rate will be 4.99% with monthly compounding interest. What will the monthly loan payment be? A. $490.53 B. $598.64 C. $1,436.10 D. $6,567.77 E. None of the above 12. If you borrow $11,500 and promise to make payments of $3,130 at the end of each year for 4 years, what is the implied rate of interest on this loan? A. 3.49% B. 6.10% C. 8.65% D. 11.24% E. None of the above 13. What is the present value of an annuity that pays $7000 annually for 12 years if the required rate of return is 8.5%? A $45.929.44 B. $51,412.80 C. $116,844.75 D. $136,844.75 E. None of the above 14. What is the future value of a 25-year $100 ordinary annuity (paid annually) with an interest rate of 12%? A. $784.31 B. $907.70 C. $918.64 D. $13,333.39 E. None of the above 15. You just won the lottery that promises to pay you $5,000,000 exactly 10 years from today. Because the $5,000,000 payment is guaranteed by the state in which you live, opportunities exist to sell the claim today for an immediate single cash payment. What is the least you will sell your claim for if you can earn an 8% rate of return on similar-risk investments during the 10-year period? A. $1,624,828.47 B. $2,315,967.44 C. $5,000,000.00 D. $10,794,624.99 E. None of the above SE Q Search

11. You want to buy a car and a local bank will lend you $26,000. The loan will be fully amortized over 4 years, and the nominal interest rate will be 4.99% with monthly compounding interest. What will the monthly loan payment be? A. $490.53 B. $598.64 C. $1,436,10 D. $6,567.77 E. None of the above 12. If you borrow $11,500 and promise to make payments of $3,130 at the end of each year for 4 years, what is the implied rate of interest on this loan? A. 3.49% B. 6.10% C. 8.65% D. 11.24% E. None of the above 13. What is the present value of an annuity that pays $7000 annually for 12 years if the required rate of return is 8.5% ? A. $45,929.44 B. $51,412.80 C. $116,844.75 D. $136,844.75 E. None of the above 14. What is the future value of a 25 -year $100 ordinary annuity (paid annually) with an interest rate of 12% ? A. $784.31 B. $907.70 C. $918.64 D $13,333,39 E. None of the above 15. You just won the lottery that promises to pay you $5,000,000 exactly 10 years from today. Because the $5,000,000 payment is guaranteed by the state in which you live, opportunities exist to sell the claim today for an immediate single cash payment. What is the least you will sell your claim for if you can earn an 8% rate of return on similar-risk investments during the 10-year period? A. $1,624,828,47 B. $2,315,967,44 C. $5,000,000,00 D. $10,794,624.99 E. None of the above