Question 1. If I purchased a new car 12 years from today. At that time, the car will cost $80,000. I currently have $10,000 to invest. What rate of interest must my investment earn so that I can pay for the car?
Question 2. Should you buy a asset that will generate income of $1,200 at the end of each year for eight years? The price of the asset is $6,200 and the annual interest rate is 10 percent.