1. A firm has decided to borrow $500,000 on a 10% add-on basis, payable in 6 end-of- month installments. What would the nominal annual rate on the loan be?
2. Annuity A offer quarterly payments of $2,500 for five years and pay 0.75 percent interest per month. (Payments starting at the beginning of each year) What is the Present Value of Annuity A?
3. A home recently sold in my neighborhood with the following data: current sale price $1,685,000-july 2015. Previous sale $60,500-july 1970. What is the annual return?