What is the contract worth in today


Problem 1. Suppose you signed a contract for a special assignment over the next 5 years. You will be paid 24,657 at the end of each year. If your required rate of return is 18.23%, what is this contract worth in today?

Problem 2. You need a loan to purchase new equipment. The loan will be paid off over 5 years with payments made at the end of every quarter. If the stated annual rate is 15.65%  and quarterly payments are $899, what is the loan amount?

Problem 3. You would like to purchase a car for $3,442. If the car loan is 7.76% financed over 5 years, what will the monthly payments be for this car?

When inputting an answer, round your answer to the nearest 2 decimal places. If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. For the final answer, Round to 2 decimal places.

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Finance Basics: What is the contract worth in today
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