1. An investment offers 10,000 per year, with the first cash flow to be received today. If the relevant interest rate is 8% per year, what is the pv of the investment ( at year 0) ? should the answer be 135000?
2. You can make 450 monthly payments for 5 yrs on a new car. If the interest rate is .5% per month ( 6% apr, with interest compounded monthly), how much can you borrow? in other words, what is the approximate value of the car you can purchase?
Please show work)