1.Your professor has taken $250,000 and put it into an account earning 5% annually.She plans to withdraw $3,000 a month and travel all over the world until the money runs out.How many years will it be before you see her again?

2.Your parents decide to give you $22,000 towards the down payment of your dream car.The car that you have chosen costs $40,000.Your friendly banker approves your loan at 5 years, 5%.What is your monthly payment?

3.If there are 30 more years before you'll retire and you start saving $100 per month, how much will you have when you retire if money is worth 5% in your savings account?

4.If a car dealer quotes you 10% APR and you are going to make your monthly payments, what is the actual rate (effective rate) that you are paying?