1. You want to buy a $20,000 vehicle and if you finance it through the bank, the five-year financing comes to $462.12 per month. What are the annual nominal and effective interest rates your bank charges if you know that the bank applies a daily compounding?
2. What annual interest rate would you need to earn if you wanted a $1,000 per month contribution to grow to $76,500 in six years? (Do not round your final answer to 2 decimal places.)
3. The IF for the future value of an annuity is 4.5 at 10% for 4 years. If we wish to accumulate $8,000 by the end of 4 years, how much should the annual payments be?