1. You have borrowed 100,000 from the bank and have promised to pay in 5 equal annual payments. What will be your installment if bank will charge you 3.26% interest rate? According to the term of the loan the first payment is due today.
2. You invested $2000 in 5 years, and you earn 7% in compound interest annually. how will be accumulated in the end of 5th year.
3. What is the maximum amount you are willing to invest in time zero if you want a 9.50% of return? Assuming an additional investment of $5000 in first year and you recieve payments at the end of second year of $500 and year three of $450, no payment in year 4, and final payment of year five you will recieved $6500.