1. Ms. Colonial has just taken out a $150,000 mortgage at an interest rate of 6% per year. If the mortgage calls for equal monthly payments for twenty years, what is the amount of each payment? (Assume monthly compounding or discounting.)
2. If the present value of $500 expected to be received one year from today is $400, what is the discount rate?
3. In four of the last five years, your investment earned you the following returns: 15%, -22%, 4%, and 41%. The average return earned over this period was -5%. Calculate the standard deviation of the stock’s returns over the last 5 years.