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Let's solve each of the questions shown in the image.

### Question 1:
The APR (Annual Percentage Rate) is equivalent to a monthly rate of 0.89%. 

To convert the monthly interest rate to APR, we use the formula:

\[
APR = \text{Monthly Rate} \times 12
\]

\[
APR = 0.89\% \times 12 = 10.68\%
\]

So, the APR equivalent to 0.89% per month is **10.68%**.

### Question 2:
Joe is considering an investment costing €12,953, with cash inflows over three years. The Net Present Value (NPV) is calculated using the formula:

\[
NPV = \sum \left( \frac{\text{Cash Inflow}}{(1 + r)^t} \right) - \text{Initial Investment}
\]

Where:
- \( r = 7.3\% = 0.073 \) (discount rate),
- \( t \) is the year number.

Given cash inflows:
- Year 1: €6,499,
- Year 2: €4,239,
- Year 3: €4,188.

Let's calculate the present value for each year:

1. **Year 1 Present Value**:
\[
PV_1 = \frac{6499}{(1 + 0.073)^1} = \frac{6499}{1.073} = 6057.97
\]

2. **Year 2 Present Value**:
\[
PV_2 = \frac{4239}{(1 + 0.073)^2} = \frac{4239}{1.151529} = 3681.62
\]

3. **Year 3 Present Value**:
\[
PV_3 = \frac{4188}{(1 + 0.073)^3} = \frac{4188}{1.236943} = 3384.51
\]

Now, sum the present values:

\[
NPV = (6057.97 + 3681.62 + 3384.51) - 12953 = 13124.10 - 12953 = 171.10
\]

So, the Net Present Value of the investment is **€171.10**.

---

Would you like more details or have any other questions?

Here are 5 related questions to expand on this:

1. How is the formula for APR derived from monthly interest rates?
2. What are the differences between APR and EAR (Effective Annual Rate)?
3. How does the discount rate affect the NPV calculation?
4. What is the significance of a positive or negative NPV for investment decisions?
5. How would changing the cash inflows or the discount rate affect the NPV?

**Tip:** When calculating NPV, always ensure the time periods and discount rates align to avoid inaccuracies in the present value.

What APR (to two places of decimal), is equivalent to 0.89% per month? Calculate the Net Present Value of an investment costing €12,953 with cash inflows of €6,499, €4,239, and €4,188 in years 1, 2, and 3, respectively, using a discount rate of 7.3%.

This problem explains how to calculate the APR from a monthly interest rate of 0.89% and determine the Net Present Value (NPV) of a three-year investment with cash inflows of €6,499, €4,239, and €4,188 using a 7.3% discount rate.

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