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1) Mwangi Ndegwa sells you a second-hand Bentley for $70,000 and loan you the whole price @ 11.22%, EAR, payable monthly.

i) Determine the monthly interest rate?
ii) Determine the monthly payment?
iii) How much do you obliged after 24 months?
iv) How much interest did you pay in the first year

2) Find out the long-term uncertainty (as a percentage) in mean wind speed for proposed wind energy project which has onsite data with the mean wind speed of 7.9 m/s with standard deviation of 0.5 m/s and a nearby long term historical data set is available with 20 years of data, of which 1 overlap with data taken at project site. These 2 data sets are known to associate with an R^2 of 0.75.

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