1. The Third National Bank of Haslett has agreed to give you a 5 year loan to buy a Dacia Sandero, priced at $11,000. The annual interest rate is 7.25%. If the bank requires you to make a 10% down payment on the car, how much will your monthly payments be if you make the purchase?

2. A friend calls you with a great investment opportunity, that will produce a return to you of $2500 per year for 5 years starting at the end of the year 2 years from now, and $6500 the year after that. Assuming you could invest in an investment of similar risk eslewhere at an annual interest rate of 7.5%, what is the most you should be willing to pay for this investment?

3. 15 years from now, your 2-year old son will be attending Harvard. You have determined he will need $85,000 per year for tuition and living expenses. In 15 years, you will give him a lump sum payment for the entire amount he will need, assuming that he will be able to invest the money not yet needed at 4.5% interest. You have found an investment opportunity that will yield an annual return of 6.5% on your monthly payments. How much will you have to invest each month to give your son the money he needs for his education (assume his first year at Harvard is Year 0, and his final year is Year 3)?