#26. Air Atlantic has been offered a 3 year-old jet airlines under a 12-year arrangement. The lease requires AA to make annual lease payments of $500,000 beginning of each of the next 12 years. Determine the present value of the lease percent.

A. 2,830,000

B. 13,635,500

C. 6,000,000

D. 3,226,367

#27. You have borrowed 75,000 at 6% for 10 years. This is a monthly loan. What do you owe the lender in month 120?

A. 375

B. 75,375

C. 45,790

D. 0

#28. A bank loans you $20,000, amortizing over five years at 12% pay yearly. What will be your yearly payment?

A. 5,548

B. 3,148

C. 6,125

D. 6,664

#29. A bank loans you $20,000, amortizing over five years at 12% pay monthly. What will be your monthly payment?

A. 462

B. 672

C. 356

D. 445

#30. A bank loans you $20,000, amortizing over five years at 12% pay yearly. How much interest will you pay in month 2 of the loan?

A. 179

B. 356

C. 198

D. 231

#31. You will receive over the next ten years the following payment: $500 each year for years 1-5 and $1000 per year for years 6-10. If you can invest the money at 10% how much money will you have in year 20?

A. 13,351

B. 28,586

C. 16,947

D. 14,526,