Question
You are valuing an investment that will pay you $21,000 per year for the first 9 years, $29,000 per year for the next 12 years,
You are valuing an investment that will pay you $21,000 per year for the first 9 years, $29,000 per year for the next 12 years, and $68,000 per year the following 13 years (all payments are at the end of each year). If the appropriate annual discount rate is 14.00%, what is the value of the investment to you today?
| $1,581,857.20 |
| $139,794.56 |
| $1,421,000.00 |
| $883,520.40 |
| $179,707.63 |
You plan to buy a car that has a total "drive-out" cost of $30,200. You will make a down payment of $3,322. The remainder of the car's cost will be financed over a period of 6 years. You will repay the loan by making equal monthly payments. Your quoted annual interest rate is 9% with monthly compounding of interest. (The first payment will be due one month after the purchase date.) What will your monthly payment be?
| $480.88 |
| $484.49 |
| $499.30 |
| $563.71 |
| $451.40 |
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