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1A. Suppose you signed a contract for a special assignment over the next 17.0 years. You will be paid $29,604.00 at the end of each
1A. Suppose you signed a contract for a special assignment over the next 17.0 years. You will be paid $29,604.00 at the end of each year. If your required rate of return is 7%, what is this contract worth in today?
1B. You need a loan to purchase new equipment. The loan will be paid off over 6.0 years with payments made at the end of every quarter. If the stated annual rate is 23.44% and quarterly payments are $410.00, what is the loan amount?
1C. You would like to purchase a car for $5,920.00. If the car loan is 10.17% financed over 6.0 years, what will the monthly payments be for this car?
1D. What is the most that you would pay for an investment that promises to pay $5,715.00 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 20.78%.
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