Answer the following compound interest questions:

1. Brian purchased a new bedroom set for his wife's birthday present. The cost of the bedroom set was $1,999 with no payments for six months. However, at the end of six months Brian owes the price of the bedroom set, plus 12% annual interest, compounded monthly. How much interest will Brian pay on his wife's birthday present?

2. Tim put $35,000 in a five-year CD paying 5.75% annual interest, compounded quarterly. What is the total amount Tim will receive when he withdraws his money after five years?

3. Andrew wants to pay off his car. He has a two-year loan at 9% annual interest that is compounded monthly. Andrew must pay $18,700 at the end of the two-year period. How much did Andrew originally borrow?

Please solve each of the following problems showing precision to five decimal places:

1. What is the nominal rate of an investment that returns 9%?

2. What is the periodic rate for a 10% loan compounded monthly?

3. What is the effective rate for each monthly payment of an auto loan when the loan is issued at 13% compounded weekly? (Assume 4.333 weeks per month.)

4. You have decided to start saving for retirement and are making quarterly payments into an account that earns 4.25% with monthly compounding. What effective interest rate is your money earning per quarter?

An Investor holds two stocks, each of which can rise (R), remain unchanged (U. or decline (D) on any particular day. Assume that for the first stock (on a particular day) PR) = .4 , AU) = .5 , PD) = 1 and that for the second stock (on a particular day) P(R) = .3 , PU) = .4, PD) = .3 Assuming that these stocks move Independently, find the probability that both stocks decline; the probability that exactly one stock rises: the probability that exactly one stock is unchanged; the probability that both stocks rise. (Round your answers to 2 decimal places.) Both decline Exactly one rises Exactly one unchanged Both riseConsider a single factor APT. Portfolio A has a beta of 1.0 and an expected return of 16%. Portfolio B has a beta of 0.8 and an expected return of 12%. The risk-free rate of return is 6%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio and a long position in portfolio OA; B OB; A A; riskless asset B; riskless assetQuestion 5 All of the following would cause exports to decline, except: O a depreciation of the domestic currency. O a decline in foreign income. O stricter government regulations on international trade. O a decline in foreign preferences for domestic goods. O foreign import quotas on domestic products.QUESTION 9 The marginal cost curve: first rises and then declines. rises when the average total cost curve lies above the average variable cost curve. rises when the point of diminishing marginal productivity is reached. declines until average total cost increases. QUESTION 10 Refer to the table shown. A firm would be least likely to hire: Number of Marginal product of workers workers AWN 50 00 0 U 6 workers. 7 workers. 8 workers. 9 workers.Question Completion Status: Costs Total and cost revenue Total revenue 1.000 Quantity Refer to Figure 19-2. If the economy is currently at point N, which of the following could cause it to move to point k7 Households expect future income to decline. The firm's cash flow rises as profits rise. Household wealth rises. Government expenditures increase