You have just agreed to a new loan and have purchased a $2,420 computer today. The loan has a 22.6% annual interest rate, compounded monthly. The minimum monthly payment is $78, and you do not expect to ever pay more than the minimum payment. Assuming no additional charges or costs will occur with this loan, approximately what will you owe on the loan at the end of 3 years (36 months) when you expect to need to purchase another new computer?

28. What is the present value of a perpetuity that pays $1,000 every year, with the first cash flow occurring today if the appropriate interest rate for this perpetuity is 6.95% p.a.?