1. You borrow P200,000 and promise to pay back P212,000 at the end of 1year. Compute the interest rate.

2. JPIA invested P10 million to buy a tract of land and plant some young pine trees. The trees can be harvested in 5 years at which time JPIA plans to sell the forest at an expected price of P15 million. What is JPIA’s expected rate of return?

3. While I was a student at USC, I borrowed P200,000 in student loans at an annual interest rate of 5%. If I repay P50,000 per year, then how long will it take me to repay the loan?

4. A mortgage company offers to lend you $85,000; the loan calls for the payments of $8,273.59 at the end of each year for 30 years. What interest rate is the mortgage company charging you?

Round off your answer up to four decimal places.