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1. Wilt's Mart is expected to produce a cash flow of $38,900 at the end of next year with increases of 1.5 percent annually for a total of 25 years. What is the present value of this business at a discount rate of 15.6 percent compounded annually?

2. You have just taken out a $28,000 car loan with a 5% ?APR, compounded monthly. The loan is for five years. When you make your first payment in one? month, how much of the payment will go toward the principal of the loan and how much will go toward? interest?

Financial Management, Finance

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