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University of North Georgia, Dahlonega FINC 3440 Exam 15 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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University of North Georgia, Dahlonega

FINC 3440

Exam 15

1)What is the present value of $3 million to be received in four years if the discount rate is 6.6% per year?

2. For an amount to double in twelve years, what annual interest rate is required?
3. What is the present value of an ordinary annuity that pays $300 annually for six years if the discount rate is 7.9% per year?
4. If the present value of an ordinary annuity that pays $305 each year for five years is $1,195.64, what is the annual discount rate?
5. If you borrow $25,000 for four years to buy a boat at an interest rate of 8.0% per year, what is the monthly loan payment?
6. Assume that you borrow $12,000 for four years at an interest rate of 5.7% per year. If the loan has monthly payments, what is the amount of interest in the first payment?
7. Assume that you borrow $18,000 for five years at an interest rate of 4.8% per year. If the loan has annual 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. Assume that you will invest $500 in one year, $400 in two years, and $500 in three years. If you earn an interest rate of 5.2% per year, how much will you have in three years?
10. You intend to lease a $32,700 car. The lease term is four years and the value of the car at the end of the lease is expected to be $25,200. If the monthly lease payment is $280.16, what is the annual lease financing rate?