1. Construct a loan amortization schedule for a 3-year, 11 percent loan of $30,000. The loan requires three equal, end-of-year payments.
2. Mitchell Investments has offered you the following investment opportunity:
¦ $6,000 at the end of each year for the first 5 years, plus
¦ $3,000 at the end of each year from years 6 through 10, plus
¦ $2,000 at the end of each year from years 11 through 20.
a. How much would you be willing to pay for this investment if you required a 12 percent rate of return?
b. If the payments were received at the beginning of each year, what would you be willing to pay for this investment?