Torch Industries borrows $250,000 on an amortized loan: 10 equal annual payments at 6% per year, with the first payment one year from today. Over the full life of the loan, how much of what Torch pays is interest?

Magnolia Foods owns a royalty stream that will pay $9,000 one year from today and grow 4% per year forever after that. The stream trades today for $150,000. What annual return does that price imply?

Maroon Brands borrows $525,000 to build a commissary and repays it with 120 equal monthly payments at 7.8% APR (monthly compounding), the first payment due one month after the loan is made. How much of payment number 45 is interest?

Torch Industries is owed $50,000 three years from today. To state that payment in today’s dollars you divide it by (1+r)^3. What is that operation called, and which direction does it move the cash flow?

Blue Delta Jeans will receive $9,000 per year for 6 years, and the first payment arrives today. The interest rate is 7%. Which statement about this stream is correct?

Torch Industries is owed $50,000 three years from today. To state that payment in today’s dollars you divide it by (1+r)^3. What is that operation called, and which direction does it move the cash flow?

Blue Delta’s bank quotes 8.4% APR, compounded quarterly, on a savings account. What effective annual rate (APY) does the account actually pay?

Cedar Ridge put $18,000 into a private fund exactly 11 years ago and has taken no cash out and put no cash in since. The position is worth $47,000 today. Interest compounds annually. What annual rate of return did the fund earn?

Maroon Brands can buy a food truck for $95,000. The truck is expected to generate $2,000 of net cash flow at the end of every month for 5 years, after which it is worth nothing. Maroon Brands’ cost of capital is 9% APR with monthly compounding. What is the NPV of buying the truck?

You retire with $780,000 in an account paying 6% APR with monthly compounding, and you withdraw $5,500 at the end of every month. How long will the money last?