6. An investment will pay $150 at the end of each of the next 3 years,...

6. An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $400 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 6% annually, what is its present value? Round your answer to the nearest cent. If other investments of equal risk earn 6% annually, what is its future value? Round your answer to the nearest cent.

7. You want to buy a car, and a local bank will lend you $20,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 8% with interest paid monthly. What will be the monthly loan payment? Do not round intermediate steps. Round your answer to the nearest cent. What will be the loan's EAR? Do not round intermediate steps. Round your answer to two decimal places.

8. Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent.

An initial $400 compounded for 1 year at 3%. An initial $400 compounded for 2 years at 3%. The present value of $400 due in 1 year at a discount rate of 3%. The present value of $400 due in 2 years at a discount rate of 3%.

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago

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