# solution

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%.

## Why US?

##### 100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

##### Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

##### Original Writing

We complete all papers from scratch. You can get a plagiarism report.

##### Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.