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golderhadashaowtatz
golderhadashaowtatz
16.07.2021 • 
Mathematics

1) Starting 1 year from now, you expect to receive six consecutive annual payments of $4,500 each. Compute the present value of these payments (assuming the interest rate of 5%)? 2) Growing Perpetuities:
a) At two years from now, you expect to receive $10. From year 3 forward, you expect to receive 5% more than you received the prior year. If the discount rate is 8%, what is the present value of these payments?

3) You borrow $35,000 to purchase a car. The loan has a term of 5 years and an APR of 3% with monthly payments. The first payment is due one month from today.
a) Write a formula that tells you the monthly payment. What is the payment amount?
b) Suppose that you sell the car immediately after making your 24th monthly payment. Assuming you are current on your payments, how much will you need to pay the bank to settle the loan at that time?

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