1) Investment will pay $200 at ending of each of next three years, $400 at the ending of Year 4, $600 at the ending of Year 5, and $800 at the ending of Year 6. If other investments of equal risk earn= 9% annually, find out its present value. Round your answer to the nearest cent. Find the future value.
2) Determine the interest rate (or rates of return) for each of situations given below. Round your answers to two decimal places.
a) You borrow $60,000 and assure to pay back $128,150 at the end of 14 years.
b) You borrow $10,000 and assure to make payments of $3,550 at the ending of each year for 3 years.
3) Your company is preparing to borrow $750,000 on 5-year, 8%, annual payment, fully amortized term loan. What fraction of payment made at end of 2nd year will represent repayment of principal?