What is the value of this liability today

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1. You will receive 26 annual payments of $41,500. The first payment will be received 6 years from today and the interest rate is 5.8 percent. What is the value of the payments today?

2. Red Sun Rising Corp. has just signed a lease for its new manufacturing facility. The lease agreement calls for annual payments of $2,150,000 for 25 years with the first payment due today. If the interest rate is 3.67 percent, what is the value of this liability today?

3. You have decided to buy a car that costs $25,000. Since you do not have a big down payment, the lender offers you a loan with an APR of 5.97 percent compounded monthly for 7 years with the first monthly payment due today. What is the amount of your loan payment?

Reference no: EM131980512

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