1. You're on your way to Spring Break, credit card waiting to be used for all of the trip's expenses. You've calculated that, when you get back, you will only be able to afford monthly payments of $40. The card has an annual interest rate of 15%, and you have decided that you must have the card paid in full in 3 years. How much will you be able to spend on Spring Break? 2. While on Spring Break, you bought a ticket for the Lotto de Cancun, and you won 3 million Pesos. You are given a choice between receiving a check for 2 million Pesos immediately, or taking your winnings in annual instalments over the next 10 years. From a financial perspective, using an annual discount rate of 10%, which is the optimal choice A. Immediate check B. Annual instalments 3. A broker offers you an investment opportunity that will pay you $5000 a year for the next 5 years, starting 3 years from now. To take advantage of this opportunity, you need to invest $14,000 up front. Assuming you require a 12% annual return for this type of investment, should you do this investment? it? What is the most you should be willing to pay for 4. You are considering buying shares of Northern Okemos bank and Trust. The bank just paid a dividend of $1.50 per share, and is expected to be able to grow its dividend payments by 2% per year. Assuming the bank only pays dividends annually, and you require an 8% return on your investment, what is the most you would be willing to pay for the stock