A person borrows $1000. To repay the amount, the person makes 12 equal monthly p

Question

A person borrows $1000. To repay the amount, the person makes 12 equal monthly payments of 593. 12. what is the nominal annual interest rate? Assume that you answer is a percentage. Only input the numeric value. Example: If your calculated answer is "0. 3821" then you should enter "38. 21" rather than "38. 21%. QUESTION 3 A set of cash flows begins at $20, 000 the first year, with a decrease each year until n = 10 years. If the interest rate is 7% then what is present value when the annual decrease is % 10? Question 4 Perry is a freshman. He estimates that the cost of tuition books room and board transporation and other incidentals will be $13, 000 this year. He expects these costs to rise about $1500 each year while he is in college. If the earns an extra $15, 000 annually for 40 years, what is the present worth of this degree? Only type in the numerical answer for your solution. Do not units or symbols such as "$"

Explanation / Answer

https://drive.google.com/open?id=0Bw82pL_9z1wOSkgwN2FsZnF3RWs

see the above link for the solution in excel format

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