How much does allan owe six years after the first loan

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1. Allan borrows 1940 dollars from his uncle. Two years later, he borrows another 1410 dollars. If his uncle charges him 8.7 percent interest compounded annually, how much does Allan owe 6 years after the first loan?

2. Quarterback Jimmy Garoppolo has been offered two choices for a contract. His implied interest rate is 5%. Option A is $7 million per year for 5 years. Option B is $2 million per year for 5 years and a $30 million payment in 10 years. What is the present value of each Option?

Reference no: EM131965914

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