4. You want to buy a car. You can afford monthly payments of $300 for four years. The bank charges 6.9% annual interest. What is the maximum price you can pay for the car?

5. You just won the lottery. You can receive your money in one of three way: (1) $200,000 cash immediately, (2) $80,000 cash immediately and $32,000 annually for five years, or (3) $52,000 annually for five years. Which option should you choose if you can earn 8% annually?

6. You just signed a promissory note agreeing to pay the bank a lump-sum payment of $150,000 in eight years. The bank charges 8% annual interest. How much money will you receive today