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Q1) Suppose you signed a contract for a special assignment over the next 11 years. You will be paid $29,328 at the end of each
Q1) Suppose you signed a contract for a special assignment over the next 11 years. You will be paid $29,328 at the end of each year. If your required rate of return is 14.00%, what is this contract worth in today? Q2) You need a loan to purchase new equipment. The loan will be paid off over 11 years with payments made at the end of every quarter. If the stated annual rate is 11.00% and quarterly payments are $667, what is the loan amount? Q3) You would like to purchase a car for $4,049. If the car loan is 04.00% financed over 6 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 $20,185 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 16.00%. Q5) A loan has a stated annual rate of 16.00%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest
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