What is the investment worth today

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1) A couple borrows $30,000 to purchase a new car. They plan to pay it back in equal monthly payments over 2 years. If money is worth 6% find the monthly payment.

2) An investment will pay out $5500 at the end of each year for the next 8 years. What is the investment worth today? Assume a 8% interest rate.

3) What is the rate of return of $10,000 today worth $20,000 in 12 years?

4) For the next 5 years, the interest rate is assumed to be 4%. After that the interest rate is assumed to be 6% for the next 4 years. The interest rate is then assumed to be 8% for the next 8 years. What is the future value of a $10,000 investment today?

Reference no: EM132073656

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