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What is contract worth in today

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Q1) Suppose you signed a contract for a special assignment over the next 14 years. You will be paid $17,255 at the end of each year. If your required rate of return is 05.00%, what is this contract worth in today?

Q2) You need a loan to purchase new equipment. The loan will be paid off over 7 years with payments made at the end of every quarter. If the stated annual rate is 17.00% and quarterly payments are $101, what is the loan amount?

Q3) You would like to purchase a car for $9,324. If the car loan is 14.00% financed over 4 years, what will the monthly payments be for this car?

Q4) What is the most that you would pay for an investment that promises to pay $13,471 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 14.00%.

Q5) A loan has a stated annual rate of 06.00%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest?

Reference no: EM133119882

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