If the current interest rate is 8%, in order to find the fair market value of the bond, we need to find the following. \[\begin{array}{lll}A=F V \text { of a lump-sum } & C=F V \text { of an annuity }...If the current interest rate is 8%, in order to find the fair market value of the bond, we need to find the following. \[\begin{array}{lll}A=F V \text { of a lump-sum } & C=F V \text { of an annuity } & E=\text { Installment payment } \\ B=P V \text { of a lump-sum } & D=\text { sinking fund payment } & F=P V \text { of an annuity }\end{array} \nonumber \] What is the maximum price you can pay for a car if the interest rate is 11% and you want to repay the loan in 4 years?
