You bought a $3,000 audio system and agreed to pay for the purchase by making 9 equal installments beginning one year from today plus a lump susm paymnet of 1000 at the end of 10 periods.   The interest rate is 10%. What is the required annual installmnets?

Suppose you're offered the following two accounts to invest $10,000 for 5 years: 11% simple interest and 6% interest compounded monthly. Which is the best choice? Part: 0 / 3 Part 1 of 3 The future value of $10,000 using 11% simple interest is $ X Ś Round your answer to the nearest cent. Do not round any intermediate steps.

a.  Renting a machine will need monthly payments of $6,000 for the next 5 years (i.e., at t = 1, 2, …, 60). However,if we choose to buy the machine today,which is (t = 0) will cost $320,000. Assume the machine's value is zero after 5 years. It is   possible to borrow and lend at a semi-annually compounded interest rate of 6% (APR). Would it be better to buy or to lease?  Explain.      b.We are currently at year 0. It is worthy to note that there is a perpetuity that pays $250 at the end of each odd year and $150 at  the end of each even year. The term structure is flat at 10% per year. Evaluate the present value of this perpetuity.     c.Assume the CAPM is valid.The return on asset ABC is perfectly correlated with the return on market portfolio. Your friend  makes the following statetment: a portfolio that had a dollar invested and  at the same time,shorting one dollar of the market portfolio will have no systematic risk. Comment on this and whether it is feasible.

Borrower Joe has an existing loan that requires 15 more years of monthly payments of $1,040. He is considering refinancing the loan balance of $117.095.08 with a new loan at the current market rate of 5.675% for 15-year loans. Both the old loan and the new loan require 2 points plus $500 in origination fees. What is the NPV of the refinancing decision at an opportunity rate of 5.675%?