1) $12,000 is borrowed now at 12% interest. The first payment is $4000 and is made 3 years from now. The balance of the debt immediately after the payment is:

a) $4000

b) $8000

c) $12,000

d) $12,860

2) The future worth of a Uniform Series is found:

a) one period before the first cash flow

b) one period after the last cash flow

c) concurrent with the last cash flow

d) concurrent with the first cash flow

3) If a company wants to have $100,000 in a contingency fund 10 years from now, the amount the company must deposit each year in years 1 through 5, at an interest rate of 10% per year, is closest to:

a) Less than $8000

b) $8420

c) $9340

d) More than $10,000

4) When using the factor (P/A i,n), n represents which of the following?

a) The number of years between P and A

b) The number of cash flows in the gradient series

c) The number of cash flows in the uniform series

d) None of the above

5) A manufacturing company borrows $100,000 with a promise to repay the Loan with equal annual payments over a 10 year period. At an interest rate of 12% per year, the annual payment would be:

a) $13,600

b) $15,400

c) $17,700

d) $19,800