1. What is the present value of a $222 perpetuity discounted back to the present at 14.84 percent.
The answer should be calculated to decimal places.
2. What is the present value of the following annuity?
$4,715 every half year at the end of the period for the next 14 years, discounted back to the present at 4.41 percent per year, compounded semiannually.
Round the answer to two decimal places.
3. You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 12.66 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan?
Round the answer to two decimal places in percentage form.
4. A commercial bank will loan you $49,022 for 8 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 10.23 percent of the unpaid balance. What is the amount of the monthly payments?
Round the answer to two decimal places.