QUESTION 1 Bowflex's television ads say you can get a Treadclimber that sells for $10,000 for 4 annual payments of $3,000. What annual rate of interest are you paying on this loan? QUESTION 2 Your mom is not very good with money. She was just awarded a 20 year annuity that will pay out $2,000 every month. She needs cash now. If you want to earn a 6% return compounded monthly, how much should you pay her today for the right to her annuity? QUESTION 3 Tom just bought a new truck for his business. To purchase the vehicle tom took out an amortized loan for $30,000. The car dealership made the loan at 12% interest compounded semiannually for five years. Determine the amount of Jimmy's semiannual payment. QUESTION 4 Assume you have an option to purchase an investment that will provide a cash payment of $20,000 in 13 years. If you believe the appropriate rate of return is 12% compounded semiannually, how much should you pay for this today