1) Kenneth's Arrows and Bows borrows $9,000 for one year at an 11% annual interest rate. What is the effective rate of interest if the loan is discounted? (Use 360 days in a year.)

2) To save for her newborn son's college education, Lea Wilson will invest $6,000 at the beginning of each year for the next 16 years. The interest rate is 12 percent. What is the future value? Use Appendix C to calculate the answer.

3) An issue of common stock is selling for $58.40. The year-end dividend is expected to be $2.35, assuming a constant growth rate of 9%. What is the required rate of return?