8. You invest $8,000 today and leve it invested for 7 years. If you earn a rate of 5%, how much can you withdraw in 7 years?
Invest	$8,000	for	7	years
Interest rate	5%
Withdraw in 7 years?
9. You want to buy a car for $30,000 today. You come up with a down payment of $4,000 and will borrow the rest from a bank in an amortized loan.
What would be your MONTHLY payments given an annual interest rate of 4% and a loan for 5 years?
Buy car for	$30,000	Down payment	$4,000	Borrow
Interest rate	4%	per year	Rate per month
Number of years	5	Number of months
Payment?
10. You borrow at a rate of 7% per year, compounded monthly. What is the effective rate?
Rate (nominal)	7%	compounded	12	times a year
Effective rate?
11. You are using the Capital Asset Pricing Model (CAPM) to estimate required returns.
The risk free rate is 2.5% and the market risk premium is 6.5%. a. What are the required rates on the following stocks?
risk free rate	2.50%	Market risk premium	6.50%
Company	beta	required rate
McDonalds	0.65
Delta	1.45
Apple	1.28
risk free rate	0