An investment offers 10000 per year with the first cash


1. An investment offers 10,000 per year, with the first cash flow to be received today. If the relevant interest rate is 8% per year, what is the pv of the investment ( at year 0)

2. You can make 450 monthly payments for 5 yrs on a new car. If the interest rate is .5% per month ( 6% apr, with interest compounded monthly), how much can you borrow? in other words, what is the approximate value of the car you can purchase?

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Financial Management: An investment offers 10000 per year with the first cash
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