tern Associates is considering a project that has the following cash flow data. What is the project's payback?

Year 0 1 2 3 4 5

Cash flows -$1,100 $300 $310 $320 $330 $340

Answer

		2.31 years
		3.52 years
		2.85 years
		3.16 years
		2.56 years Consider a 12-year loan with annual payments at 5%. If the loan amount is $250,000, compute the interest paid in the eighth year. ABC Company offers a perpetuity which pays annual payments of $19,963. This contract sells for $254,349 today. What is the interest rate?