1. You're thinking about borrowing a $4000 personal loan. The interest rate on the loan is 10% with quarterly compounding. You believe you can make a quarterly payment of $500. How many years will it take you to pay off the loan?
2. How many years will it take for your money to tripple if you deposit $700 in a bank account that pays 12% a year, compounded semi-annually? Your Answer:
3. MicroDrive has issued bonds that have a 6% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 5%. What is the current price of the bonds?