BH_FFM13_TB_ch05.doc&nbsp5-1 through 5-8, 5-11, 5-15, 5-16, 5-3

BH_FFM13_TB_ch05.doc 5-1 through 5-8, 5-11, 5-15, 5-16, 5-31, 5-34You receive a stream of cash flow of $2,200 per year forever with the first payment started four years from now.  What is the present value of these cash flows today if interest rate is 10%?You plan to borrow $35,000 at a 7.5% annual interest rate.  The terms require you to amortize the loan with 7 equal end-of-year payments.  How much interest would you be paying in Year 2?

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