Question
Your parents have just sold you their old car for $3,000. Since you have no money you have offered to pay your parents 20 equal
Your parents have just sold you their old car for $3,000. Since you have no money you have offered to pay your parents 20 equal monthly payments of blended principal and interest to pay off the car. The first payment is due 1 month from now. The stated rate on the loan is 12%APR. How much is each payment?
Select one:
a. None of the above
b. $37.53
c. $125.84
d. $212.87
e. $166.25
Your company is about to invest in a new printing press which will save it about $25,000 per year for the next five years, at which time the printing press will be obsolete and will be sold for negligible value. The printing press costs $100,000. What is the NPV of this project if the applicable discount rate is 7% per year?
Select one:
a. $2,505
b. $7,887
c. $5,874
d. $4,745
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