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  3. a) how much must be invested today in order to gen

a) How much must be invested today in order to generate a five year anni...

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Accounting

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a) How much must be invested today in order to generate a five year anni of $1,000 per year, with the first payment one year from today, at an interest rate of 12%? Answer: year cashflow PVE AT 12% Present value 1 0.892857 892.85714 1000 2 1000 0.797194 797.19388 3 1000 0.71178 711.78025 4 1000 0.635518 635.51808 5 1000 0.567427 567.42686 Present value 3604.77 Amount to be invested today-3604.77 b) A car dealer offers payments of $522.59 per month for 48 moths on an $25,000 car after making a $4,000 down payment. What is the loan's APR? c) What is the present value of a four-period annuity of $100 per year that begins tow years from today, if the discount rate is 9%

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