1. Luke's Bikes has received $200,000 pure discount loan from a bank. The bank will charge 6% interest (compounded annually) and require the loan to be paid back in 5 years. How much will Luke's Bikes have to repay when the loan matures? 2. Alex is buying a car and plans to take out a loan with a 4% interest rate and a 4 year term. Alex wants to spend $300 per month on the loan payment. What is the most Alex can spend on the car today. 3. To save for retirement, you've decided to save $250 a month at the end of each month during your career. You plan to work for 36 years. Assuming you can earn a 7% return (compounded monthly), how much will you have saved when you retire?

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