1) Lisa Carson has the opportunity to receive $12,000 now or $15,000 in four years. If Lisa can earn 6 percent on her investment, what is the present value of the $15,000 payment?

2) Tom has a four-year-closed-end lease on his land cruiser. His contract stipulates a $0.42 per mile excess mileage charge in excess of 48,000 miles. If he actually drove the vehicle 60,000 miles during the four years, he would be charged and extra___.

3) What is the monthly payment for a $24,000, four-year, 12 percent loan with the interest calculated using the add-on method?