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What is the present value

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What is the present value of $5,000 paid each year forever, assuming a discount rate of 3% and the first payment occurs one year from now? Equivalently: What amount would you have to invest today at an interest rate of 3% to generate an annual payment of $5,000 forever? Please round your answer to the nearest hundredth.

Consider an account holding $30,000 (the "principal") and earning 5% interest each year. If the account holder withdraws the interest each year, how much interest would the principal amount generate each year? Please round your answer to the nearest hundredth.

What is the present value of $5,000 paid each year forever, assuming a discount rate of 3% and the first payment occurs one year from now? Equivalently: What amount would you have to invest today at an interest rate of 3% to generate an annual payment of $5,000 forever? Please round your answer to the nearest hundredth.

You can afford $350 per month for car loan payments. For a 60-month loan at 9.0% stated annual interest, with the first payment one month from now, how much can you borrow? Please round your answer to the nearest hundredth.

Reference no: EM133000099

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