8. A financial company will pay you $70,000 now in exchange for annual payments of $11000 that you are expected to receive over the next 9 years. If you estimate the time value of money at 7 percent each year, would you accept this offer?

8. A financial company will pay you $70,000 now in exchange for annual payments of $11000 that you are expected to receive over the next 9 years. If you estimate the time value of money at 7 percent each year, would you accept this offer?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 6P

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Question

8. A financial company will pay you $70,000 now in exchange for annual payments of $11000 that you
are expected to receive over the next 9 years. If you estimate the time value of money at 7 percent
each year, would you accept this offer?
9. If you borrow $59,500 today to buy a car, with a 3.6 percent per year interest rate to be repaid in 4
years, what would be the monthly payment?

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