1. Thom owes $7,400 on his credit card. The credit card carries an APR of 18.5 percent compounded monthly. If Thom makes monthly payments of $230 per month, how long will it take for him to pay off the credit card assuming that he makes no additional charges?

44.79 months

32.17 months

11.42 months

48.23 months

41.80 months

2. A friend wants to borrow money from you. He states that he will pay you $3,700 every 6 months for 12 years with the first payment exactly 5 years and six months from today. The interest rate is 4.7 percent compounded semiannually. What is the value of the payments today?

$55,115.83

$53,478.71

$52,113.23

$53,337.90

$42,664.69

3. Harpeth Valley Water District has a bond outstanding with a coupon rate of 2.91 percent and semiannual payments. The bond matures in 14 years, with a yield to maturity of 3.63 percent, and a par value of $5,000. What is the market price of the bond?

$4,620.76

$4,610.27

$4,614.68

$4,699.75

$4,607.60

4. You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $30,000, $34,000, $70,000, and $105,000 to you each year over the next four years, respectively. All payments will be made at the end of the year. If the appropriate interest rate is 5.2 percent, what is the value of the settlement offer today?

$222,046.05

$205,092.09

$239,000.00

$215,756.88

$182,304.08

5. A stock had returns of 16.27 percent, ?6.23 percent, and 23.48 percent for the past three years. What is the standard deviation of the returns?

12.22%

2.40%

15.50%

8.95%

24.02%