8. Suppose you are going to receive $13,000 per year for 9 years. The appropriate interest rate is 9 percent. What is the present value of the payments if they are in the form of an annuity due? PRESENT VALUE= 9. A local finance company quotes a 17 percent interest rate on one-year loans. So, if you borrow $40,000, the interest for the year will be $6,800. Because you must repay a total of $46,800 in one year, the finance company requires you to pay $46,800/12, or $3,900.00, per month over the next 12 months. What rate would legally have to be quoted? RATE= 10. When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $6. Based on actuarial tables, "Joltin' Joe" could expect to live for 27 years after the actress died. Assume that the EAR is 11.4 percent. Also, assume that the price of the flowers will increase at 4.6 percent per year, when expressed as an EAR. Assuming that each year has exactly 52 weeks, what is the present value of this commitment? Joe began purchasing flowers the week after Marilyn died. A) $4,047.12 B) $3,844.76 C) $4,249.48 D) $3,925.71 E) $4,168.53