What is the size of your monthly payment

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Reference no: EM131978828

1. You need to borrow $18,000 to buy a truck. The current loan rate is 9.5% compounded monthly and you want to pay the loan off in equal monthly payments over five years. What is the size of your monthly payment?

a. $378.03 b. $455.66 c. $381.56 d. $382.45 e. $363.39

2. You just won the lottery. You and your heirs will receive $27,000 per year forever, beginning one year from now. What is the present value of your winnings at a 9% discount rate?

a. $325,000

b. $331,250

c. $337,500

d. $312,500

e. $300,000

Reference no: EM131978828

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