1. What is the most you would be willing to pay for a investment that will pay you$884.00in one year,$520.00in two years, and$887.00in three years, if your required rate of return for this type of investment is11.34% ?
2. Suppose you signed a contract for a special assignment over the next13.0years.You will be paid$3,136.00at the end of each year.If your required rate of return is18.72% , what is this contract worth in today?
3. You need a loan to purchase new equipment.The loan will be paid off over7.0years with payments made at the end of every quarter.If the stated annual rate is6.50%and quarterly payments are$910.00 , what is the loan amount?
4. You would like to purchase a car for$10,053.00 .If the car loan is5.80%financed over7.0years, what will the monthly payments be for this car?
5. What is the most that you would pay for an investment that promises to pay$24,009.00a year forever with the first payment starting one year from now?Assume that your required rate of return for this investment is17.45%