Three years from now you will begin receiving annual payments of$7,200. This will continue for 14 years. At a discount rate of5.8%, what is the present value of this stream of cashflows?

you just graduated and you expect to work for ten years and then to leave for the Australian"Outback" bush country. You figure you can save$1,000 a year for the first five years and$2,000 a year for the next five years. These savings cash flows will start one year from now. Inaddition, your family has just given you a$5,000 graduation gift. If you put the gift now and your future savings when theystart, into an account that pays8% compoundedannually, what will your financial"stake" be when you leave for Australia 10 years from now.(Round to the nearest wholedollar)

ou just took out a$12,000 loan for your small business. The loan has a four year term and repayment is in the form of four equal end-ofyear payments. The interest rate on the loan is11.5%. What are your annual loanpayments?

A.

$3,867.92

B.

$3,909.29

C.

$3,144.83

D.

$3,246.84

E.

$3,287.78

You just took out a$12,000 loan for your small business. The loan has a four year term and repayment is in the form of four equal endofyear payments. The interest rate on the loan is11.5%. Consider the final loan payment. How much principal do you pay in the finalpayment?

You just took out a$12,000 loan for your small business. The loan has a four year term and repayment is in the form of four equal endofyear payments. The interest rate on the loan is11.5%. Consider the final loan payment. How much interest do you pay in the finalpayment?