1. What is the present value of a $900 perpetuity if the interest rate is 7%? If interest rates doubled to 14%, what would its present value be? Round your answers to the nearest cent.

Present value at 7%: $

Present value at 14%: $

2. You borrow $250,000; the annual loan payments are $12,754.81 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number.

3. You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent.

Financed for 48 months: $

Financed for 60 months: $