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Your interest rate is 8%. How much are you willing to pay for the opportunity to earn $16,000 a year forever starting next year. Your

  1. Your interest rate is 8%. How much are you willing to pay for the opportunity to earn $16,000 a year forever starting next year.
  2. Your interest rate is 8%. How much are you willing to pay today for the opportunity to earn $16,000 a year forever starting in year 21?
  3. Your interest rate is 8%. How much are you willing to pay for the opportunity to earn $16,000 for the next 20 years?
  4. You are looking to buy a new car. Your discount rate is 7%. If you are willing to pay $400 a month over 72 months, what is the price of the car you can buy?

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