You have credit card debt of $30,000 that has an APR (monthly compounding) of 18%. Each month you pay the minimum monthly payment. You are required to pay only the outstanding interest. You have received an offer in the mail for an otherwise identical credit card with an APR of 10%. After considering all your alternatives, you decide to switch cards, roll over the outstanding balance on the old card into the new card, and borrow additional money as well. How much can you borrow today on the new card without changing the minimum monthly payment you will be required to pay? (Note: Be careful not to round any intermediate steps less than six decimal places.)

1)You can borrow ____ $ on the new card without changing the minimum monthly payment you will be required to pay (round to nearest decimal place)

You are thinking about investing $5000 in your friend's landscaping business. Even though you know the investment is risky and you can't be sure of the outcome, you expect your investment to be worth $5750 next year. You notice that the rate for one-year Treasury bills is 1%. However, you feel that other investments of equal risk to your friend's landscape business offer an expected return of 10% for the year. What should you do?

2)The present value of the return is $____

Suppose the Bank of Montreal is offering a 30-year mortgage with an EAR of 4.375%. If you plan to borrow $325,000, what will your monthly payment be?(Note: Be careful not to round any intermediate steps less than six decimal places.)

3)Your monthly payment will be $

Do the relevant calculations so you can indicate which you prefer: a bank account that pays 5.5% per year (EAR) for 3 years or a. an account that pays 2.3% every 6 months for 3 years? b. an account that pays 7.9% every 18 months for 3 years? c. an account that pays 0.69% per month for 3 years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.)

If the rate of inflation is 4.9%,what nominal interest rate is necessary for you to earn a 3.7%real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.)