1. Use the information for the question(s) below. You are in the process of purchasing a new automobile that will cost you $27,500. The dealership is offering you either a $2500 rebate (applied toward the purchase price) or 1.9% financing for 48 months (with payments made at the end of the month). You have been pre-approved for an auto loan through your local credit union at an interest rate of 6.5% for 48 months. If you take the $2500 rebate and finance your new car through your credit union your monthly payments will be closest to:

		$520
		$573
		$799
		$593

2.

Wesley Mouch's auto loan requires monthly payments and has an effective annual rate of 7.43%. The APR on this auto loan is closest to:

		7.19%
		7.62%
		7.50%
		7.43%

3.

Rearden Metal needs to order a new blast furnace that will be delivered in one year. The $1,000,000 price for the blast furnace is due in one year when the new furnace is installed. The blast furnace manufacturer offers Rearden Metal a discount of $60,000 if they pay for the furnace now. If the interest rate is 7%, then the NPV of paying for the furnace now is closest to:

		($6,729)
		($5,421)
		$5,421
		$6,729