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37. Assume that Ratchet and Clank are trying to borrow money from you to finance their new business. Assume that Ratchet and Clank promise to

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37. Assume that Ratchet and Clank are trying to borrow money from you to finance their new business. Assume that Ratchet and Clank promise to repay you in three installments, one payment of $5,000 to be made exactly 2 years from today, a second payment of $10,000 to be made exactly 5 years from today, and a final payment of $15,000 to be made 8 years from today. If your opportunity cost of funds is 7.5% p.a., (that is, use an interest rate of 7.5% for this question), how much should you be willing to lend Ratchet and Clank today? 38. What is the future value at the end of year 28 of depositing $5,000 today, $3,500 at the end of years 1, 2 and 3, $5,000 at the end of years 4, 5, 6 and 7 and $4,250 at the end of years 8, 9, 10, 11 and 12 into an account that pays 9.5% p.a.2 (No deposits will be made into the account after year 12). 39. If Lisa Hamilton wants to fund a scholarship that would pay $12,500 per year forever at GSU, how much would Lisa have to deposit today if she wanted the scholarship to start paying six (6) years from today? Assume the endowment could earn 6.25% p.a. interest forever. 40. Kratos currently owes $26,000 on a car loan at 4.25 percent interest. If Kratos makes monthly payments of $596.59 per month, how long (i.e., number of months rounded to one decimal place) will it take him to fully repay the loan? USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING THREE QUESTIONS Vito Scaletta just bought his dream car, a 2020 Bugatti Divo, that cost $5,808,215. He paid $500,000 down and financed the balance over 84 months at 4.25% p.a. (Assume that Vito makes all required payments on time). 41. What is the monthly payment on Vito's loan? 42. What will the balance on Vito's loan be at the end of the fourth year (that is, immediately after Vito makes his 48h payment on the loan)? 43. What is the total amount of interest that Vito will pay over the entire term of the loan (that is, the total amount of interest that is paid on payments 1 through 84)

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