You would like to purchase a perpetuity that will pay you $1,000 per year forever. If you require an annual rate of return of 6%, at most how much at most are you willing to pay for it today? Pick closest answer. What is a Perpetuity? $14,445 O $19,645 O $16,667 O $15,778 Your Grandparents will help subsidize your college expenses. At the end of each year, they will give you the amounts in the following table. Rounded to the closest dollar, how much are these payments worth to you now (Present Value) at a 4% rate of discount? Hint: This is an uneven CF problem so use the CF keys. End of each year Amount 1 $4,000 2 $6,000 3 $8,000 $18,000 $15,152 $19,244 $16,505 Tightwad Bank in Tightwad, Missouri offers you a $100,000, 8-year loan at 6.1 percent annual interest to your small business, which is amortized to zero. What will your annual loan payment be? WHAT ARE MY ODDS OF TIGHTWAD BANK GETTING A LOAN HERE! imgfip.com O $16,167.39 O $17,236.74 $17,660.02 O $16,925.57