Question 1. If you borrow $15,618 and are required to pay the loan back in 7 equal annual installments of $300. What is the interest rate assocated with this loan?
Question 2. Your rich uncle has offered you a choice of one of the three following alternatives. Which one would you take?
a) $10,000 now
b) $2000 a year for 8 years -equal investments have earned 11%
c) $24, 000 at the end of 8 years - equal investments have earned 11%.
Question 3. Joe will receive $175,000 in 50 years. What is his pot of gold worth today if the alternative investment rate is 14%.