1. Suppose your salary in 2013 is $60,000. Assuming an annual inflation rate of 6%, what salary do you need to earn in 2015 in order to have the same purchasing power? (Round your answer to two decimal places.)

2. You borrow$7000to help pay your college expenses. You agree to repay the loan at the end of6years at10%interest, compounded quarterly. (Round your answers to two decimal places.)(a) What is the maturity value of the loan? $ (b) How much interest are you paying on the loan? $

3. Use a calculator for this exercise. Chuong Ngo borrows $5400 from a bank that advertises a 7% simple interest rate and repays the loan in six equal monthly payments. Estimate the APR. Round to the nearest tenth of a percent. Use the Approximate Annual Percentage Rate Formula.