You can afford to pay $500 per month for a car loan. You plan to borrow for 5 years at 9% interest. How much can you borrow for your new car?

Question 1 options:

A)

28,250.00

B)

37,712.00

C)

24,086.00

D)

30,000.00

Question 2

You receive a royalty payment on a book you wrote. The payment is equal to $5,000 per year and is forecast to continue for 10 years. At a 9% discount rate, how much is this stream of payments worth today?

A)

75,964.00

B)

32,088.00

C)

22,350.00

D)

50,000.00

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Question 3

How much money can you borrow if you can afford a payment of $800 per month for 30 years at 7% interest?

A)	288,000.00

B)	120,246.00

C)	155,255.00

D)	975,976.00

Question 4

How much money will you have if you invest $500 per MONTH for 25 years, earning a 12% annual rate of return?

A)

46,759.00

B)

14,121.00

C)	939,423.00

D)	756,890.00