Question
Can you please answer the questions - Please show the steps Problem 1 Suppose you signed a contract for a special assignment over the next
Can you please answer the questions -
Please show the steps
Problem 1
Suppose you signed a contract for a special assignment over the next 8 years. You will be paid $15,435.00 at the end of each year. If your required rate of return is 12%, what is this contract worth in today?
Problem 2
You need a loan to purchase new equipment. The loan will be paid off over 12 years with payments made at the end of every quarter. If the stated annual rate is 12% and quarterly payments are $325.00, what is the loan amount?
Problem 3
You would like to purchase a car for $23426. If the car loan is 12.7% financed over 5 years, what will the monthly payments be for this car?
Problem 4
What is the most that you would pay for an investment that promises to pay $16,691.00 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 9.1%.
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