If the discount annual rate is 940 percent compounded


1. A car dealership offers you no money down on a new car. You may pay for the car for 3 years by equal monthly end-of-the-month payments of $862 each, with the first payment to be made one month from today. If the discount annual rate is 9.40 percent compounded monthly, what is the present value of the car payments?

2. What is the present value of the following annuity?

$4,333 every quarter year at the end of the quarter for the next 11 years, discounted back to the present at 13.60 percent per year, compounded quarterly?

Round the answer to two decimal places.

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Financial Management: If the discount annual rate is 940 percent compounded
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