7) Broke Bank offers you a $66,000, six-year term loan at 11.5 percent annual interest. What will your annual loan payment be? 8) Long Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $44,400 per year forever. If the required return on this investment is 13 percent, how much will you pay for the policy? 9) What is the present value of $55,000 to be received in 15 years if the discount rate is: a) 8% compounded annually? b) 8% compounded semi-annually? c) 8% compounded quarterly? d) 8% compounded monthly 10) What is the future value of $55,000 invested today in 15 years if the required rate of return is: a) 8% compounded annually? b) 8% compounded semi-annually? c) 8% compounded quarterly? d) 8% compounded monthly 11) Determine the future value of the following scenarios: a) Annual deposits of $7,596 for 30 years in an account paying 12% compounded annually? b) Quarterly deposits of $1,899 for 30 years in an account paying 12% compounded quarterly? c) Monthly deposits of $633 for 30 years in an account paying 12% compounded monthly? 12) Overtha Hill is ready to retire and has a choice of three pension plans. Plan A provides for an immediate cash payment of $213,000. Plan B provides for the payment of $30,000 per year for 10 years and the payment of $50,000 at the end of year 10. Plan C will pay $33.000 per year for 10 years. Overtha Hill desires a return of 9 percent. Determine the present value of each plan and select the best one. 13) Carter Flip" Allison recently rejected an $14,000,000, five year contract with the Vancouver Seals. The contract offer called for an immediate signing bonus of $9,000,000 and annual payments of $1,000,000. To "sweeten" the deal, the president of player personnel for the Seals has now offered a $16,000,000, five-year contract. This contract calls for annual increases and a balloon payment at the end of five years. Year 1 S 2,000,000 Year 2 $ 2.100,000 Year 3 $ 2,200,000 Year 4 $ 2,300,000 Year 5 $ 2,400,000 Year 5 balloon payment $ 5.000.000 Total $16.000.000 Suppose you are Allison's agent and you wish to evaluate the two contracts using a required rate of return of 14 percent. In present value terms, how much better/worse is the second contract