Calculate the effective rate for this loan.

1. You recently used your credit card to buy a laptop for $2,500. Your credit card has an APR of 19.9%. You are paying only a minimum payment billed for $50 per month. If you do not use this card again, how long will it take you to pay off this loan? If instead you increase monthly payment to $60 per month, how many years will it take to pay off this loan? Jack and Jill are twins and at 20 years of age they both opened separate investment accounts with an on online broker. Jack started investing $50 a month starting from today. Jill will save $55 a month starting at the end of the month. if this investment account gives them 8% annual return on investment, how much money will each have accumulated when they both retire at age 65?

2. You have saved up for retirement in an annuity account. This account earns a return of 7% on annual basis but compounded monthly. You are due to retire in 6 years from now. You will receive monthly payments of $2,400 at the end of each month after retiring, for 15 years. How much have you saved up in this account today?

3. Two banks are competing to give a loan to you for $150,000 with 30-year term to maturity, bank a is offering 6% with quarterly compounding while bank b is offering 5.98% with daily compounding. which bank should you take the loan from? support your answer with calculations.

4. A contract requires you to make a payment of $2,500 immediately upfront and additional three payments of $500 each at the end of next three years. If interest rate on this investment is 8.5%, calculate the present value of the contract?

5. Your investment account is expected to earn a 5% return for next two years and then 8% return for next four years after that. You need to withdraw $750 from this account at the end of each month for next six years. After last withdrawal at end of six years, nothing remains in your account. how much is the deposited in this account today? (Assume monthly compounding)

6. You just bought a condo for $250,000 and paid $50,000 as down payment. The remaining amount is financed through a loan of 4.5% compounded monthly. The loan is for 15 years. You have to make monthly payments at the end of each month. What is your monthly payment? What is the balance of this loan after ten tears? What is the total interest paid on this loan for 15 years?