1. An investment, which is worth 185,470 dollars and has an expected return of 7.73 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected later today and the last annual cash flow is expected in 8 years from today. What is the present value of the annual cash flow that is expected in 5 years from today?
2. Fatima wants to buy a boat that is available at two dealerships. The price of the boat is the same at both dealerships. Middlefield Motors would let her make quarterly payments of 1,430 dollars for 8 years at a quarterly interest rate of 3.31 percent. Her first payment to Middlefield Motors would be due in 3 months. If Fairfax Boats would let her make equal monthly payments for 3 years at a monthly interest rate of 0.62 percent and if her first payment to Fairfax Boats would be today, then how much would each monthly payment to Fairfax Boats be?
Solve and show your work using the TI-84 financial calculator