Question $1.$ In $2014,$ the average debt for college student loans is $$28,700.$ This amounts to a $$330$ monthly

payment for a standard loan repayment plan over $10$ years. What monthly interest rate is being charged on

this typical student loan? Please draw the cash flow diagram to help analyze the scenario.

Hint. Any loan or borrowing is the money going into your pocket. This question is asking the monthly interest

rate over the $10$ years, so your terms is $120$ months instead of $10$ years. Use the macro $$rate$$ to determine

the monthly interest rate.

Question $2.$ Enrico has decided to purchase a house instead of renting an apartment. He can afford a monthly

payment of $$800,$ and he has saved $$6,000$ to use as a down$-$payment on a house. If the mortgage rate is $4\%$

compounded monthly on a $30-$year loan, how much can Enrico afford to spend on a house? Please draw the

cash flow diagram to help analyze the scenario.

Hint. The total of a house purchase equals to the sum of a down payment and a loan. The loan is similar to

scenario $1,$ where you have a fixed payment of $$800$ to pay a $30-$year loan for $4\%$ monthly. Once you get the

present value of the loan, you will need to add additional $$6,000$ down payment.

Question $3.$ Luis wants to have $$2,000,000$ in net worth when he retires. To achieve this goal, he plans to

invest $$10,000$ each year into an account that earns $10\%$ interest compounded annually. The amount of time

before Luis can retire as a multi$-$millionaire is how many years? Please draw the cash flow diagram to help

analyze the scenario.

Hint. This is asking the number of years instead of months. It is still Plan $2$; but what you are asked for is to find

the length of time needed $($e$.$g$.$ nper$).$