Problem 1. What is the present value of an investment that pays you $25.41 per month if the first payment is today and the last payment is in 6 months if the discount rate is 5.0% per month? (Round to the nearest cent)
Problem 2. You have a loan that requires you to make equal quarterly payments of $120.83 for 6 quarters. Your next quarterly payment is due today and the quarterly interest rate is 7.9%. If you pay off your loan with one additional payment of $93.38 in 6 quarters, then what is the current balance of your loan? (Round to the nearest cent)