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Please show ALL work for each problem. 12. You have decided to invest in your TA's Core project. You will have to invest $100 today
Please show ALL work for each problem.
12. You have decided to invest in your TA's Core project. You will have to invest $100 today and invest an additional $40 4 years from today. You will receive $300 per year for 5 years beginning 1 year from today. If you assume a discount rate of 5%, what is the expected NPV of your investment? A) $919 B) $1,199 C) $1,159 D) $1,166 13. You have saved $3000 to buy a new car and can budget $1000 every three months to repay a loan. If you use your $3000 savings for a down payment and get a 5 year loan at 4% APR (compounded quarterly) with $1000 payments every three months, how much can you pay for your car? A) $16,865 B) $18,045 C) $21,04.5 D) $25,680 14. Your cousin has agreed to sell you her electric scooter for $500. She has agreed to let you What is the interest rate that pay for it with 6 monthly payments of $85 beginning today. you will be paying her expressed as an APR? A) .79% B) 4.74% C) 9.59% D) 6.82%
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