4. You want to expand your business by investing $25,500 now. How much do you have to pay if you decide to delay your business expansion for 6 years, and how much do you have to pay if you had made this expansion 3 years ago? The annual interest rate is i%.
5.0 You want to expand your business by getting a loan of $25,000, and you request to pay it over the next 6 years with an annual interest rate of i%. How much is your installment (annual payment) per year?
6. You want to expand your business by getting a loan of $25,000 at an annual interest rate of i%, and pay it back in installments of $5,500 per year. After how many years will you make a profit?
7. You want to expand your business by getting a loan of $40,000, and you request to pay it back in installments of $6,000 per year over the next 10 years. What is the annual interest rate of your loan?
8. You want to run a business that gives you revenue of $5,500 per year and increases gradually with a rate of $500 starting from year 2. What is the present worth if you plan to run this business for 8 years at an annual interest rate of i%? Also, what is the equivalent (constant annual revenue) that you can get from this business?
9. Estimate the present worth in year 0 for the cash flows (CF) shown in the table below. The interest rate is i% per year.
Year CFS
0 200
2 600
3 600
4 600
5 -200
6 -200
7 -200
8 -200
9 800
600
