You are at a car dealership and have just found a car you wo…

You are at a car dealership and have just found a car you would like to purchase. After agreeing on a sale price with the salesperson, you fill out some of the necessary paperwork and are taken to work through financials with the financier. You are given two different loan options. Loan A has a payment due today, and Loan B has its first payment in a month. You calculate the present value of each loan and find that Loan A is lowest. Which do you choose and why?

The company that you work for is close to paying off a small…

The company that you work for is close to paying off a small fleet of delivery trucks that were purchased 3 years ago. The balance due 1 year from today is $50,000. If your company can earn 3 percent interest in a risk-free asset today, how much money is necessary to invest in the risk-free asset to pay off the truck?