1. Emmons Corporation has a 0.0 probability of a return of 0.57, a 0.2 probability of a rate of return of 0.07, and the remaining probability of a 0.0 rate of return. What is the variance in the expected rate of return of Emmons Corporation?
2. John Fare purchased $12,000 worth of equipment by making a $2000 down payment and promising to pay the remainder of the cost in semiannual payments over the next 3 years. The interest rate on the debt is 6%, compounded semiannually. Find the following. (Round your answers to the nearest cent.)
(a) the size of each payment
(b) the total amount paid over the life of the loan $
(c) the total interest paid over the life of the loan