1) You want to purchase a new car, but can only afford a payment of $1,000 per month. If the dealer tells you that they have financing available at an APR of 4% for a 48-month loan, how much can you afford to borrow for your new car (given the $1,600 payment)?

2) Max Corp. plans on paying its first dividend of $2 per share one year from today, and then will pay an annual dividend. Investors anticipate that the dividend will grow at a rate of 3% per year, and the applicable discount rate is 11%. What should be the price of one share of Nelson Corp. stock today?

3) You need a quick $500 to pay this month's cell phone bill. An "payday" loan company will lend you that amount for one month, charging you a fee of "only" $50 (meaning you pay back $550 in one month). The fee will be due on the day you pay off the loan. Recognizing that the fee is in reality the interest payment, what is the true Effective Annual Rate (EAR) on this loan?