Please show the steps
Problem 1
Suppose you signed a contract for a special assignment over the
next 8 years. You will be paid $15,435.00 at the end of each year.
If your required rate of return is 12%, what is this contract worth
in today?
Problem 2
You need a loan to purchase new equipment. The loan will be paid
off over 12 years with payments made at the end of every quarter.
If the stated annual rate is 12% and quarterly payments are
$325.00, what is the loan amount?
Problem 3
You would like to purchase a car for $23426. If the car loan is
12.7% financed over 5 years, what will the monthly payments be for
this car?
Problem 4
What is the most that you would pay for an investment that
promises to pay $16,691.00 a year forever with the first payment
starting one year from now? Assume that your required rate of
return for this investment is 9.1%.
