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If you could answer both, that would be great. Also, if you can show calculations on a calculator, that would be awesome! Question 5 5
If you could answer both, that would be great. Also, if you can show calculations on a calculator, that would be awesome!
Question 5 5 pts You are taking out a car loan and will make payments of $430 each month (beginning one month from today), for a total of 60 monthly payments. If the interest rate on the loan is 1.14% (the effective monthly rate on this loan), how much are you borrowing to buy the car? [Hint: Loan problems are typically PV annuity problems, where the amount you are borrowing is the PV of the series of future payments.] Do not round any intermediate work. Round your final answer to 2 decimal places (ex: if your answer is 12.345678 then you should enter 12.35). Margin of error for correct answers: +/-.03. D Question 4 5 pts An investment offers the following cash flows: $207 today, $642 one year from now, $796 in 2 years, and $526 in 3 years. If the relevant interest rate is 4% per year (an APR, with interest compounded annually), what is the value of the investment 3 years from today (immediately after the cash flow at "year 3" occurs)? Do not round any intermediate work. Round your final answer to 2 decimal places (ex: if your answer is 12.345678 then you should enter 12.35). Margin of error for correct answers: +/-.05
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