Question 2.8 (10pts) T0 buy a new machine a company takes a loan of $50,000 to be repaid in quarterly installments for 10 years at 14% interest compounded monthly. If the general in ation rate is 5% compounded monthly, nd the actual and constant dollar value of the 20th payment of this loan.

Question 2.9 (10pts) You just signed a business consulting contract with one of your clients. The client will pay you $20,000 every year for the service you will provide. You anticipate the annual general in ation rate over the following years to be 6%. If the client pays the consulting fee at the end of each year, what is the worth of the third payment in constant dollars?

Question 2.10 (10pts) On her 30th birthday, an engineer decides to start saving toward building up a retirement fund that pays 12% interest compounded monthly (market interest rate). She feels that $200,000 worth of purchasing power in today's dollars will be adequate to see her through her sunset years after her 60th birthday. Assume an annual general in ation rate of 6%. If she plans to save by making 120 equal quarterly deposits in actual dollars, what should be the amount of each quarterly deposit in actual dollars?

Question 2.8 (10pts) To buy a new machine a company takes a loan of $50,000 to be repaid in quarterly installments for 10 years at 14% interest compounded monthly. If the general inflation rate is 5% compounded monthly, find the actual and constant dollar value of the 20th payment of this loan. A) A20 = $2,341.36, Al. = $1,824.40, B) A20 = $2,356.27, A20 = $1,836.02, C) A20 = $9,585.68, A20 = $7, 469.21, D) Answers A, B and C are not correct Question 2.9 (10pts) You just signed a business consulting contract with one of your clients. The client will pay you $20,000 every year for the service you will provide. You anticipate the annual general inflation rate over the following years to be 6%. If the client pays the consulting fee at the end of each year, what is the worth of the third payment in constant dollars? A) $16,496.58 B) $16,792.39 C) $17,799.93 D) Answers A, B and C are not correct Question 2.10 (10pts) On her 30th birthday, an engineer decides to start saving toward building up a retirement fund that pays 12% interest compounded monthly (market interest rate). She feels that $200,000 worth of purchasing power in today's dollars will be adequate to see her through her sunset years after her 60th birthday. Assume an annual general inflation rate of 6%. If she plans to save by making 120 equal quarterly deposits in actual dollars, what should be the amount of each quarterly deposit in actual dollars? A) $876.36 B) $995.91 C) $1,022.25 D) Answers A, B and C are not correct