Question 1: A 10-year annual annuity due with the first payment occurring at date t=7 has a current value of $50 000. If the discount rate is 13% per year, what is the annuity payment amount?
Question 2: You currently owe a finance company $6700 that you would like to pay back over the next 24 months (payments will be made at the end of the month.) The finance company is charging you 16% interest compounded quarterly. How much will your monthly payments be?