1. John spends $6,000 and in return receives 6 semi-annual payments of $1,100 Calculate the effective interest rate per year.2. An engineer starts to make quarterly deposits of $1,500 (at the end of a quarter) into an investment account at age of 45. If he wants to have $250,000 when he retires at age of 65, what must be the nominal (10 pts) and effective (15 pts) interest rates per year?3.Two alternatives are being considered:Initial cost$8500$6000. Two hazardous environmental facilities are being evaluated, with the projected life of each facility being 10 years. The cash flows are as follows:First cost$550,000$300,000Annual maintenance & operating cost$30,000$15,000Annual benefits$140,000$95,000Consider an interest rate of 12% per year. Using the annual cash flow analysis, which alternative should be selected?