1. A 3-year bond costs $30,000 and will pay a total of $2,000 in interest over its lifetime. What is its annual interest rate r? HINT [See Example 3.] (Round your answer to three decimal places.)

r = %

2. You are expecting a tax refund of $5,000 in 4 weeks. A tax preparer offers you an "interest-free" loan of $5,000 for a fee of $50 to be repaid by your refund check when it arrives in 4 weeks. Thinking of the fee as interest, what weekly simple interest rate would you be paying on this loan? What is the corresponding annual rate? HINT [See Example 5.]

weekly simple interest rate

%

annual simple interest rate

%

3. Compute the specified quantity.

You take out a 1-year, $5,000 loan at 8% simple annual interest. The lender charges you a $200 fee. Thinking of the fee as additional interest, what is the actual annual interest rate r you will pay?

r =

%