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What is the total future value of all payments ten years

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Question 1: Suppose you take out a car loan that requires you to pay $7,000 now, $3,000 at the end of year 1, and $7,000 at the end of year 2. The interest rate is 4% now and increases to 6% in the next year. What is the present value of the payments?

Question 2: Suppose you will receive payments of $9,000, $5,000, and $20,000 in 1, 4, and 8 year(s) from now, respectively. What is the total future value of all payments 10 years from now if the interest rate is 1%?

  • The primary goal of the firm should be to maximize profit. True or False

Reference no: EM132470926

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