1. Suppose an investment offers to triple your money in 72 months (don't believe it).

Required:

What rate of return per quarter are you being offered?

4.22%

6.29%

3.51%

4.68%

5.15%

2. You want to buy a new sports car from Muscle Motors for $39,000. The contract is in the form of a 72-month annuity due at a 10.00 percent APR.

Required:

What will your monthly payment be?

$722.51

$730.87

$702.21

$716.54

$680.71