Present and future values of a cash flow stream

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PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM

An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6.

If other investments of equal risk earn 5% annually, what is its present value? Round your answer to the nearest cent. $

If other investments of equal risk earn 5% annually, what is its future value? Round your answer to the nearest cent. $

LOAN AMORTIZATION AND EAR

You want to buy a car, and a local bank will lend you $35,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 12% with interest paid monthly.

What will be the monthly loan payment? Do not round intermediate steps. Round your answer to the nearest cent. $

What will be the loan's EAR? Do not round intermediate steps. Round your answer to two decimal places. %

Reference no: EM132007530

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