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You win a scratch off lottery ticket that promises to pay an initial payment of 10,000 this year and grow at a rate of 5% forever. If the discount rate is 8%, what is the present value of this investment?

 \$350,000.00 \$400,000.00 \$300,000.00 \$500,000.00 None of the above

Suppose that you buy a car which requires that you make the first payment on the day that you buy it in order to drive it off the lot. The payments are \$505 per month. What was the sticker price of the car if the monthly interest rate is 1.5% (periodic rate) and it takes 4 years (48 months) to pay off the car?

 \$17,449.36 \$17,191.49 \$35,130.44 \$35,657.39 None of the above

You win a scratch off lottery ticket that promises to pay an initial payment of 10,000 this year

and grow at a rate of 5% forever. If the discount rate is 8%, what is the present value of this

investment?

\$350,000.00

\$400,000.00

\$300,000.00

\$500,000.00

None of the

above

Suppose that you buy a car which requires that you make the first payment on the day that you

buy it in order to drive it off the lot. The payments are \$505 per month. What was the sticker

price of the car if the monthly interest rate is 1.5% (periodic rate) and it takes 4 years (48

months) to pay off the car?

\$17,449.36

\$17,191.49

\$35,130.44

\$35,657.39

None of the

above

Paper#9210229 | Written in 27-Jul-2016

Price : \$22