1. A homeowner planning a kitchen remodeling can afford a $100 monthly payment. How much can the homeowner borrow for 4 years at 3%, compounded monthly, and still stay within the budget? (Round your answer to the nearest cent.)
2. Currently, $1 will buy C$1.29 while $1.12 will buy €1. What is the exchange rate between the Canadian dollar and the euro?
3. Calculate the value of a bond that is expected to mature in 18 years with a $1,000.00 face value. The coupon rate is 4% and the required rate of return is 8%. Interest will be paid annually.
4. If you are willing to pay $1,077.00 for a 15 year $1,000.00 par value bond that pays 9% interest semi-annually, what is your expected rate of return?