What is the total present value of the stream of payments

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Point 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 $6,000 at the end of year 2. The interest rate is 1% now and increases to 8% in the next year. What is the present value of the payments?Enter your response below rounded to 2 decimal places.

Point 2: Suppose you will receive payments of $8,000, $4,000, and $4,000 in 1, 7, and 8 year(s) from now, respectively.

Question 1: What is the total present value of this stream of payments if the interest rate is 4%?Enter your response below rounded to 2 decimal places.

Reference no: EM132470888

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