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Your best friend has just started a new business and is looking for investors. She promises to pay $300 one year from today and $700

Your best friend has just started a new business and is looking for investors. She promises to pay $300 one year from today and $700 in two years. Assuming a discount rate of 11%, how much would you be willing to invest today?

$851.24

$1,291.08

$1,732.99

$900.53

You are in the market for a new car, and have just found the one you want to purchase. You can pay for the car with cash for $35,000 today, or you can finance the car for 5 years with monthly payments of $888.77. What is the implied interest rate of the loan?

5.1%

7.9%

1.5%

3.3%

An investment opportunity promises to pay $5,500.00 per year forever starting ten years from today. Assuming the interest rate of 7%, what should I pay today for this investment?

$58,194.98

$47,737.65

$42,956.71

$30,111.39

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