1. Air Atlantic has been offered a 3 year-old jet airlines under a 12-year arrangement. The lease requires AA to make annual lease payments of $500,000 beginning of each of the next 12 years. Determine the present value of the lease percent.
A. 2,830,000
B. 13,635,500
C. 6,000,000
D. 3,226,367
2. You have borrowed 75,000 at 6% for 10 years. This is a monthly loan. What do you owe the lender in month 120?
A. 375
B. 75,375
C. 45,790
D. 0
3. A bank loans you $20,000, amortizing over five years at 12% pay yearly. What will be your yearly payment?
A. 5,548
B. 3,148
C. 6,125
D. 6,664
3. A bank loans you $20,000, amortizing over five years at 12% pay monthly. What will be your monthly payment?
A. 462
B. 672
C. 356
D. 445
4. A bank loans you $20,000, amortizing over five years at 12% pay yearly. How much interest will you pay in month 2 of the loan?
A. 179
B. 356
C. 198
D. 231
5. You will receive over the next ten years the following payment: $500 each year for years 1-5 and $1000 per year for years 6-10. If you can invest the money at 10% how much money will you have in year 20?
A. 13,351
B. 28,586
C. 16,947
D. 14,526,