1. You borrow $2,500 for 8 years and repay $3,700.What was your interest rate?

2. You invest $16,000 for 3 years and receive $17,000 at the end. What was your interest rate?

3. You borrow money and repay $67,000 after 9 years. The interest rate was 4.5%. How much did you borrow?

4. What would you pay for a security promising to pay $10,000 in 10 years if the required rate of return is 3.5%?

5. What would you pay for a security that will pay 20 annual payments of $50 if the required rate of return = 4%?

6. You pay $2,500 today and receive a series of six $700 annual payments. What is your rate of return?

7. A security will pay $40 annually for 12 years, plus $1,000 at the end of the 12^th year. With required return = 3%, what is the security worth today?