Please answer the following questions and show all work:

1. If $1,500 is invested at 10% per year, in approximately how many years will the investment triple?

a) 6.12 years b)14.27 years c) 11.52 years

2. An investment pays $400 in one year and X number of dollars in two years. The total present value of all the cash flows (including X) is equal to $1,200. If i is 6 percent, what is X?

a) $1261.40 b) $789.70 c) $924.32

3. You buy a car for $28,000. You agree to a 5-year loan with a 6% APR. What is your required monthly payment?

a) $541.32 b) 745.29 c) $605.54

4. Suppose we observe the following rates:

1R1= 10%, 1R2= 16%, E(2R1)= 12%. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity for year 2?

a) 10.32% b) 6.145% c) 8.36%

Thank You