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Q1) Suppose you signed a contract for a special assignment over the next 12 years. You will be paid $23,371 at the end of each
Q1) Suppose you signed a contract for a special assignment over the next 12 years. You will be paid $23,371 at the end of each year. If your required rate of return is 15.00%, what is this contract worth in today? Q2) You need a loan to purchase new equipment. The loan will be paid off over 13 years with payments made at the end of every quarter. If the stated annual rate is 08.00% and quarterly payments are $144, what is the loan amount? Q3) You would like to purchase a car for $9,222. If the car loan is 06.00% financed over 5 years, what will the monthly payments be for this car? Q4) What is the most that you would pay for an investment that promises to pay $24,862 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 29.00% Q5) A loan has a stated annual rate of 05.00%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest
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