What is the most you would be willing to pay

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Question 1. Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $45,854 with an annual interest rate of 15.00%. The loan will be repaid over 11 years with monthly payments.

What is the Loan Payment?
What portion of this payment is Interest?
What portion of this payment is Principal?
What is the Loan balance after first monthly payment?

Question 2. What is the most you would be willing to pay for an investment that will pay you $880 in one year, $515, in two years, and $594 in three years, if your required rate of return for this type of investment is 22% ?

Reference no: EM133491962

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