PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM
An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6.
If other investments of equal risk earn 5% annually, what is its present value? Round your answer to the nearest cent. $
If other investments of equal risk earn 5% annually, what is its future value? Round your answer to the nearest cent. $
LOAN AMORTIZATION AND EAR
You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 12% with interest paid monthly.
What will be the monthly loan payment? Do not round intermediate steps. Round your answer to the nearest cent. $
What will be the loan's EAR? Do not round intermediate steps. Round your answer to two decimal places. %