The discount rate is $15\%.$

The cash flows will be $$10$ million for $15$ years and then grow at a rate of $5\%$ per year,

but will die at the end of $30$ years $($in total$).$ What is the present value?

Write your answer in numerals without a $ sign. Use $2$ decimal points $($cents$)$ if

appropriate

Question $6$

The payments described below are compounded monthly.

Suppose you borrow $$25,000$ on Sept $1,2006,$ and another $$25,000$ on Sept $1,2007$

to finace the portion of tuition and living expenses for graduate school for which your

savings are insufficient. Repayment on each of these loans ids deferred until

graduation. However, interest of $6\mathrm{.}5\%($quoted APR$)$ begins accuring immediately

$($compounded monthly$).$ The fist payment is due Spet $1,2008.$ The loan agreement

specifies that they loan be repaid in $120$ equal monthly installments.

A$.$ What will be the total value of your indebtedness on August $31,2008($Assume

interest for the last month has accrued but no payments have yet been made$)$ will be

$54,837\mathrm{.}98$

B$.$ The monthly payment will be $622\mathrm{.}08$

Please answer all $3!$ thank you