The present value of the investment

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1) An investment offers $3,600 per year for 11 years, with the first payment occurring one year from now. If the required return is 8 percent, the present value of the investment is __. If the payments occurred for 32 years, the present value of the investment would be___. If the payments occurred for 80 years, the present value of the investment would be__ If the payments last forever, the present value would be ___

2) You are planning to make monthly deposits of $150 into a retirement account that pays 14 percent interest compounded monthly. If your first deposit will be made one month from now, your retirement account will be worth $___in 15 years

3) You want to buy a new sports coupe for $54,250, and the finance office at the dealership has quoted you a 6.2 percent APR loan for 36 months to buy the car. Your monthly payment will be $___ and the effective annual rate on this loan is __percent.

4) You’re prepared to make monthly payments of $310, beginning at the end of this month, into an account that pays 7.2 percent interest compounded monthly. How many payments will you have made when your account balance reaches $22,000?

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