1.You wish to buy a $22,500 car. The dealer offers you a 4-year loan with a 10 percent APR. What are the monthly payments? How would the payment differ if you paid interest only?

2.A loan is offered with monthly payments and a 8.75 percent APR. Whats the loans effective annual rate (EAR)?

3.Assume that you contribute $310 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $620 per month for another 25 years. Given a 8 percent interest rate, what is the value of your retirement plan after the 50 years?

4.Compute the future value in year 8 of a $4,400 deposit in year 1 and another $3,900 deposit at the end of year 3 using an 10 percent interest rate.

5.Given a 3 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,550, $1,750, $1,750, and $2,050.