1.

Find the interest rate (or rates of return) in each of the following situations. Do not round intermediate calculations. Round your answers to the nearest whole number.

1. You borrow $750 and promise to pay back $825 at the end of 1 year.

2. You lend $750 and receive a promise to be paid $825 at the end of 1 year.

3. You borrow $60,000 and promise to pay back $228,178 at the end of 9 years.

4. You borrow $18,000 and promise to make payments of $4,390.00 at the end of each of the next 5 years.

2.

To complete your last year in business school and then go through law school, you will need $35,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $35,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 8% interest a sum of money that is sufficient to provide the 4 payments of $35,000 each. His deposit will be made today. Do not round intermediate calculations. Round your answers to the nearest cent. If your answer is zero, enter "0".

1. How large must the deposit be?

   $

2. How much will be in the account immediately after you make the first withdrawal?

   $

   How much will be in the account immediately after you make the last withdrawal?

   $

3.

While Mary Corens was a student at the University of Tennessee, she borrowed $12,000 in student loans at an annual interest rate of 9.9%. If Mary repays $1,500 per year, how long will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.

year(s)