1. Monte needs to start paying back his student loan. The amount he owes is $14,069.80 with an APR of 5.94%. Assuming he will take 20 years, how much will his monthly payment be?
2. Jason and Larissa would like to have a monthly living expense covered ratio (basic liquidity ratio) of 3. They currently have $2,800 in their account and their annual expenses are $54,000. How much more do they need in their account to reach their goal?
3. A stock has a covariance with the market of .122. The variance of the market is .08. You believe that the market will earn 10% and that the risk free rate is 2%. Find the required return.