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You work for a man that purchased a Monet painting in 1980 for $200,000.  He just sold the painting at the end of 2020 for $4,000,000.  Assume full years.  What rate of return did he earn?  Enter your answer in decimal format using for decimal places.  For example, 3.25% would be entered as .0325.

You are borrowing $500,000 to purchase a commercial building.  The interest rate is 5% and the loan will be over ten years with monthly payments.  There is a $10,000 origination fee you will have to pay at the closing of the loan.  What is the APR (true cost of financing) of the loan?  Enter your answer in decimal format using for decimal places.  For example, 3.25% would be entered as .0325.

You have been offered the “opportunity” to finance a business for your brother-in-law.  He has promised you the following annual payments: CF 1 = 5000 CF 2 = 5000 CF 3 = 7000 CF 4 = 8000 CF 5 = 9000 Your required rate of return is 15%.  What is the most you can pay for the investment and still earn your required rate of return?

You made an investment of $10,000 and received the following annual cash flows: CF 1 = $2,000 CF 2 = $3,000 CF 3 = $4,000 CF 4 = $5,000 CF 5 = $7,000 What rate of return did you earn?  Enter your answer in decimal format using for decimal places.  For example, 3.25% would be entered as .0325.

You are borrowing $500,000 to purchase a commercial building.  The interest rate is 5% and the loan will be over ten years with monthly payments.  There is a $15,000 origination fee you will have to pay at the closing of the loan.  What is the APR (true cost of financing) of the loan?  Enter your answer in decimal format using for decimal places.  For example, 3.25% would be entered as .0325.

You made an investment of $10,000 and received the following annual cash flows: CF 1 = $2,000 CF 2 = $3,000 CF 3 = $4,000 CF 4 = $5,000 CF 5 = $5,000 What rate of return did you earn?  Enter your answer in decimal format using for decimal places.  For example, 3.25% would be entered as .0325.

You are purchasing a house for $225,000 and making a down payment of $25,000.  You will finance the loan over 15 years with monthly payments at an interest rate of 5.5%.  What is your monthly payment?

What is the PV of a 3-year, $10,000 annuity, starting in year three?  Your required rate of return is 12%.

What is the PV of a 3-year, $10,000 annuity, starting in year three?  Your required rate of return is 13%.

You are shopping for furniture for your new home and have found some pieces that you like.  The price for the furniture package is $20,000 and the dealer is offering 0% financing for 36 months.  You believe, based on what the salesperson said, that you could save $4,000 by paying cash.  You know you can always borrow from your credit union and pay cash, but you need to know the true cost of the 0% financing in order to make a decision.  What is the true cost of the dealer financing?  Enter your answer in decimal format using for decimal places.  For example, 3.25% would be entered as .0325.