1)A rent-to-own transaction is similar to a lease, where payments are required up front and the residual value equals zero. . What effective rate of interest (rounded to two decimals) is being charged for a two-year rent-to-own contract on a Panasonic camcorder with a purchase price of $379 requiring monthly payments of $79.88? What total amount of interest is paid? . If the individual borrowed money on a high-interest credit card instead with a rate of 29.99% compounded daily, what would be the monthly payments? What total amount of interest is paid?

2)Fehrway Tours needs three extra touring vehicles for the next operating year because of a temporary increase in demand for its tour routes. Fehrway can buy the vehicles from Greyhound Canada for $175,000 each, or it can lease them for one year requiring monthly payments of $7,350 each based on a residual value of $110,000 each. If Fehrway purchases the vehicles, it requires financing at 6.6% compounded monthly and projects it could sell the vehicles for net revenue of $95,000 each after one year. Which option would you recommend that Fehrway pursue? How much better is the option in current dollars?

3)Guido placed $28,300 into a five-year regular interest GIC with interest of 6.3% compounded semi-annually. Determine the total interest Guido will earn over the term.

4)An eight-year, $35,000 noninterest-bearing promissory note is discounted 6% compounded quarterly and sold to a finance company three years and nine months after issue. What are the proceeds of the sale?