1.) Quantitative Problem: You own a security that provides an annual dividend of $190 forever. The securitys annual return is 8%. What is the present value of this security? Round your answer to the nearest cent.

2.)You own a security with the cash flows shown below.

0

1

2

3

4

0

670

380

240

340

If you require an annual return of 10%, what is the present value of this cash flow stream? Do not round intermediate calculations. Round your answer to the nearest cent.

3.) Quantitative Problem: Bank 1 lends funds at a nominal rate of 10% with payments to be made semiannually. Bank 2 requires payments to be made quarterly. If Bank 2 would like to charge the same effective annual rate as Bank 1, what nominal interest rate will they charge their customers? Do not round intermediate calculations. Round your answer to three decimal places.

4.)

Quantitative Problem: You need $12,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 4 years, with the first payment to be made one year from today. He requires a 6% annual return.

1. What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent.

   $

2. How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate calculations. Round your answers to the nearest cent.

   Interest: $

   Principal repayment: $