Question
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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