1) Approximately how many years are needed to double a $100 investment when interest rates are 8.50 percent per year? (Round your answer to 2 decimal places.)

2) Determine the interest rate earned on a $2,100 deposit when $2,400 is paid back in one year. (Round your answer to 2 decimal places.)

3)What annual rate of return is earned on a $1,000 investment when it grows to $2,800 in six years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

4) How many years (and months) will it take $2 million to grow to $6.20 million with an annual interest rate of 7 percent? (Do not round intermediate calculations. Round "months" to 1 decimal place.)

5) Compute the future value in year 9 of a $3,000 deposit in year 1, and another $2,500 deposit at the end of year 5 using a 9 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

6) What is the future value of a $1,000 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

7) Compute the present value of a $2,500 deposit in year 3, and another $2,000 deposit at the end of year 5 if interest rates are 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

8) What's the present value of a $940 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

9) What's the present value, when interest rates are 7.5 percent, of a $140 payment made every year forever? (Round your answer to 2 decimal places.)

10)If the present value of an ordinary, 7-year annuity is $7,400 and interest rates are 8.5 percent, what's the present value of the same annuity due? (Round your answer to 2 decimal places.)

11) A loan is offered with monthly payments and a 8.00 percent APR. What's the loan's effective annual rate (EAR)? (Do not round intermediate calculations and round your finalanswer to 2 decimal places.)

12) Payday loans are very short-term loans that charge very high interest rates. You can borrow $250 today and repay $325 in two weeks. What is the compounded annual rate implied by this 30 percent rate charged for only two weeks?(Hint: Compound the 2-week return 26 times for the annual return.) (Do not round intermediate calculations and round your final answer to the nearest whole percent.)

13) You wish to buy a $25,500 car.The dealer offers you a 5-year loan with a 9 percent APR. What are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

How would the payment differ if you paid interest only? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

14) Dakota Corporation 15-year bonds have an equilibrium rate of return of 10 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 3.50 percent. The security's liquidity risk premium is 1.20 percent and maturity risk premium is 1.80 percent. The security has no special covenants. Calculate the bond's default risk premium. (Round your answer to 2 decimal places.)

15) One-year Treasury bills currently earn 4.00 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 4.20 percent. The liquidity premium on 2-year securities is 0.06 percent. If the liquidity theory is correct, what should the current rate be on 2-year Treasury securities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

16) Assume the current interest rate on a 1-year Treasury bond (₁R₁) is 5.20 percent, the current rate on a 2-year Treasury bond (₁R₂) is 5.95 percent, and the current rate on a 3-year Treasury bond (₁R₃) is 7.20 percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the 1-year forward rate expected on Treasury bills during year 3, ₃f₁? (Do not round intermediate calculations. Round your answer to 2 decimal places.)