1)You took out some student loans in college and now owe $12,000. You consolidated the loans into one amortizing loan, which has an annual interest rate of 8% (APR).

If you make monthly payments of $200, how many months will it take to pay off the loan? Fractional values are acceptable.

2)The preferred stock of General Motors pays a dividend of $2 every quarter. The appropriate discount rate is 6% per quarter.

If you expect to receive the $2 every quarter, starting one quarter from now, for exactly 7 years and nothing thereafter, what is the present value of the preferred stock?