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17) What is the present value (PV) of an investment that will pay $400 in one year's time, and $400 every year after A) $7200
17) What is the present value (PV) of an investment that will pay $400 in one year's time, and $400 every year after A) $7200 B) $2400 C) $3600 D) $8000 18) You are borrowing money to buy a car. If you can make payments of $300 per month starting one month from now at an interest rate of 4%, how much will you be able to borrow for the car today if you finance the amount over four years? A) $13,067.62 B) $6,358.54 C) $15,587.88 D) $13,286.65 19) Clarissa wants to fund a growing perpetuity that will pay $5000 per year to a local museum, starting next year. She wants the annual amount paid to the museum to grow by 5% per year. Given that the interest rate is 8%. how much does she need to fund this perpetuity? A) $143,445.65 B) $102,112.33 C) $166,666.67 D) $62,500.00
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