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University of North Georgia, Dahlonega FINC 3440 Exam 10 1)What is the present value of $3 million to be received in four years if the discount rate is 6

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6. Assume that you borrow $27,000 for six years to buy a car at an interest rate of 4.8% per year. If the loan has monthly payments, what is the total amount of interest that you will pay over the life of the loan?
7. Assume that you borrow $50,000 for five years at an interest rate of 4.4% per year. If the loan

has semiannual payments, what is the amount of principal in the first payment?

8. If the present value of a perpetuity is $10,6330 when the discount rate is 4.7% per year, what is the amount of the annual payment?
9. A security will pay $100 in one year, $200 in two years, and $300 in three years. If the appropriate discount rate is 6.7% per year, what is the value of the security today?
10. You intend to lease a $36,000 car. The lease term is four years and the financing rate is 5.3% per year. If the value of the car at the end of the lease is expected to be $16,500, what is the monthly lease payment?