### Question 3

- Today, you are purchasing a $1,093 5-year car loan at 8 percent. You will pay annually at the end of each year. What is the amount of each payment?

### Question 7

1. The ABC Company is considering a new project which will require an initial cash investment of $15,870. The projected cash flows for years 1 through 4 are $5,630, $6,434, $8,928, and $4,501, respectively. If the appropriate discount rate is 9%, compute the NPV of the project.

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

### Question 8

1. If you receive $299 at the end of each year for the first three years and $617 at the end of each year for the next three years. What is the present value? Assume interest rate is 8%.

Hint: This is an uneven cash flow problem. Use the CF function and solve for NPV to get the answer.

Just enter the number up to 2 decimal points. Do not enter $ in the answer box

### Question 9

- 026:
Say, you deposit $1,541 in a bank for 19 years. What is the amount you will have in the bank at the end of 19 years if interest of 4 % for first 5 years and interest of 8 % for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

### Question 10

- How much do you need to invest today in order to have $12,538 at the end of 16 years if you are sure to earn an interest at the rate of 3%? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

### Question 12

- If you can triple your money in 24 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box..

### Question 13

- 027:
Say, you deposit $4,561 in a bank for 17 years. What is the amount you will have in the bank at the end of 17 years if interest of 4 % compounded monthly for first 8 years and interest of 7 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

### Question 14

- What is the future value of $1,860 for 7 years at 6 percent if interest is compounded semi-annually? Note: Do not enter “$” in your answer. Simply write down the number that you get as your answer.

### Question 15

- What is the future value of $2,786 invested for 9 years at 8% if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

### Question 16

- How many months it will take to grow your money from $4,730 to $7,028 if you can earn an interest of 5% compounded monthly? Note: Do not write “months” in your answer. Simply write the number in the answer box.

### Question 17

1. Assume interest rate of 9%. Suppose that you receive $114,945 at the end of each year for 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value.

Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.

### Question 18

- How much do you need to invest today in order to have $6,756 at the end of 6 years if you are sure to earn an interest at the rate of 10%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

### Question 19

- What is the effective rate of 13% compounded monthly?

Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.

### Question 20

1. What should you be willing to pay in order to receive $916 annually forever, if you require 4% per year on the investment?

Just enter the number up to 2 decimal points. Do not enter $ in the answer box.

### Question 21

- 023A:
If you can double your money in 7 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.

### Question 22

- What is the future value of quarterly payments of $795 for 14 years at 6 percent?

### Question 23

- What is the future value of $1,419 invested for 20 years at 7% if interest is compounded semi-annually (twice a year)? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

### Question 24

- How many years it will take to grow your money from $4,615 to $6,725 if you can earn an interest of 13% compounded quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

### Question 25

1. Assume interest rate of 8%. A company receives cash flows of $542 at the end of year 5, $275 at the end of year 7, and $691 at the end of year 10. Compute the future value of this cash flow stream.

### Question 26

- How much do you need to invest today in order to have $683 at the end of 23 years if you are sure to earn an interest at the rate of 8%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

### Question 27

- What is the future value of annual payments of $3,598 for 19 years at 5 percent?

### Question 29

- How many years it will take to grow your money from $3,478 to $6,842 if you can earn an interest of 14% compounded monthly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

### Question 30

- What is the future value of $4,254 invested for 12 years at 8% if interest is compounded semi-annually? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

### Question 31

- How many years it will take you to double your money if you can earn 5% each year, given that compounding is quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

### Question 32

- Kelly starting setting aside funds 6 years ago to buy some new equipment for her firm. She has saved $607 each quarter and earned an average rate of return of 5 percent. How much money does she currently have saved for this purpose?

### Question 34

1. Barrett Pharmaceuticals is considering a drug project that costs $174,959 today and is expected to generate end-of-year annual cash flows of $13,959, forever. At what discount rate would Barrett be indifferent between accepting and rejecting the project?

Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

### Question 35

1. In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the balance remaining at the end of 5 years.

### Question 36

1. The ABC Company is considering a new project which will require an initial cash investment of $5,474. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are $3,514, $3,809, $2,905, and $5,345, respectively. If the appropriate discount rate is 13%, compute the NPV of the project.