What is the loan amount

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a. What is the most you would be willing to pay for a investment that will pay you $328.00 in one year, $182.00 in two years, and $415.00 in three years, if your required rate of return for this type of investment is 22.71%?

b. Suppose you signed a contract for a special assignment over the next 13.0 years. You will be paid $18,724.00 at the end of each year. If your required rate of return is 5.81% , what is this contract worth in today?

c. You need a loan to purchase new equipment. The loan will be paid off over 7.0 years with payments made at the end of every quarter. If the stated annual rate is 11.31% and quarterly payments are $555.00 , what is the loan amount?

Reference no: EM132392792

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