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Present Value of an Annuity 2 . What is the present value of $ 1 0 , 0 0 0 cash flows occurring at the

Present Value of an Annuity
2. What is the present value of $10,000 cash flows occurring at the end of years one, two and three at an interest rate of 6 percent?
3. Amy Madigan can afford to make $400 payments on a car loan for the next 60 months. If the interest rate on the loan is 0.50 percent p.m. compounded monthly, what is the most expensive car Amy can afford?
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