Question
answer the 5 part question to question 1 1A.) Suppose you signed a contract for a special assignment over the next 13 years. You will
answer the 5 part question to question 1
1A.) Suppose you signed a contract for a special assignment over the next 13 years. You will be paid 1,143 at the end of each year. If your required rate of return is 14.8%, what is this contract worth in today?
1B.) You need a loan to purchase new equipment. The loan will be paid off over 15 years with payments made at the end of every quarter. If the stated annual rate is 21.96% and quarterly payments are $589, what is the loan amount?
1C.) You would like to purchase a car for $9,649. If the car loan is 5.51% financed over 5 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 $14,756 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 29.68%.
1E.) A loan has a stated annual rate of 14.71%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest? Please be sure to answer as a percentage.
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