Generally, if you have an upfront cost at date 0 and benefits in the future, then an increase in the interest rate will _____ the investment's NPV.

Selected Answer: 

A. Decrease, 

B. Cannot be determined. 

C. Increase

 

3- Suppose the nominal interest rate is 5.06% and the rate of inflation is 2% in the United States. What is the real interest rate?

4- Suppose you can get a 24-month, 6% APR loan (monthly compounding) to buy the just released iphone 11 Pro Max, which is priced at $1,099 (suppose you do not have sales tax in your state).What will your monthly payment be?

5- Your mortgage has 20 years left, and has an APR of 6% with monthly compounding and monthly payments of $1500. What is the outstanding balance?