1). Mike and Cindy are buying a new car, but they are on a budget. The think that they can afford to pay $408 per month for 5 years, based on an annual interest rate of 8.6 percent. How much can they afford to borrow, given this information? (Show your answer to the nearest dollar) 2). What is the present value of an ordinary annuity of $601.53 per month for 20 years, evaluated at a nominal annual interest rate of 9 percent? 3). Fred owes $12,000 on his credit card, which carries an annual interest rate of 14.2 percent. If he does not charge anything else and sends the credit card company $546 every month, how many months will it take to pay off the card? (Show your answer to two decimal places, e.g., 12.34) 4). You are buying a house and have borrowed $129,000 at an annual interest rate of 6.1 percent. The terms of the loan require you to make monthly payments and to completely amortize the loan over thirty years. How much is each monthly payment? 5). Although Bill has nothing saved for retirement so far, he has determined that he will need to have $895,000 in the account when he retires. He plans to open a retirement account and make monthly contributions from his paycheck. The account that earns 6.6 percent annual interest (which is compounded monthly). How much will he have to invest each month to be able to reach his goal at the end of 32 years? Show your answer as a positive number to the nearest penny. 6). Fred is setting up a trust fund for his son. The trust will pay his son $1,000 each year for the next 22 years. If the trust fund earns 8.6 percent interest per year, how much does Fred have to put into the trust fund today in order to fund the series of annual payments? (Show your answer as a positive number). 7). If you deposit $1,067 per month into a savings account that pays an annual rate of 4.7 percent, compounded monthly, how much will you have in the account after 31 years? 8). Ted wants to purchase some outstanding shares of preferred stock that promise an annual payment of $5.68 forever. Assuming Ted requires an investment return of 9 percent on similar investments, what is the most he should be willing to pay per share?