Maximum amount you would pay to receive the payments

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Reference no: EM131915141

1. Joe is offering you the following payments: Year 1 = $1,000; Year 2 = $3,000; Year 4 = $5,000; and Year 6 = $10,000. If you think you should earn 10% on similar risk investments, what is the maximum amount you would pay to receive the payments?

$12,448,24

$11,987.25

$14,739.01

$13,474.80

2. Jack and Jill are buying a new $339,999 house. The bank wants 5% down payment and will finance the remainder at 3.75% annual interest for 30 years. About how much is each monthly payment?

$1,199.35

$1,292.09

$1,304.04

$1,495.86

none of the above

Reference no: EM131915141

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