Q1.If a furniture retailer offers a financing plan on a $1500 purchase requiring four equal quarterly payments of $400 including the first payment on the purchase date, what effective rate of interest is being charged on the unpaid balance?Interim calculations should be to 4 decimal places; final answer to .01%

Q2.The first quarterly payment of $750 in a five-year annuity will be paid in 33/4 years from now. Based on a discount rate of 8.25% compounded monthly, what is the present value of the payments today?Interim calculations should be to six decimals; final answer to the nearest cent.

Q3.Ramon wishes to replace payments of $900 due today and $500 due in 22 months by a single equivalent payment 18 months from now. If money is worth 4.8% compounded monthly, what should that payment be?Interim calculations to 3 decimals, final answer rounded to the nearest cent.

Q4.A life insurance company pays investors 5% compounded annually on its five-year GICs. For you to be indifferent as to which compounding option you choose, what would the nominal rates have to be on GICs with quarterly compounding? Interim calculations should be to 5 decimal places; final answer to the nearest .01%

Q5.A rental agreement requires the payment of $900 at the beginning of each month. What single payment at the beginning of the rental year should the landlord accept instead of twelve monthly payments if money is worth 6% compounded monthly?Interim calculations should be to 3 decimal places; final answer to the nearest cent.