1. An interest rate is 5%, the number of period are 3, and the present value is $100, then the future value will be: A. 115.76 B. 105 C. 110.25 D. 113.56 4. You want to buy an ordinary annuity that will pay you $ 4,000 a year for the next 20 years. You expect annual interest rates will be 8 percent over that time. The maximum price you would be willing to pay for the annuity is closest to: A. $32,000 B. $ 39,272 C. $ 40,000 D. $ 80,000 5. With continuous compounding at 10 percent for 30 years, the future value of an initial investment of $2000 is closest to: A. $34,898 B. $40,171 C. $ 164,500 D. $ 328,282 6. You are considering investing in a zero-coupon bond that sells for $250. At maturity in 16 years it will be redeemed for $1,000. What approximate annual rate of growth does this represent? A. 8 percent B. 9 percent C. 12 percent D. 25 percent 7-15. You want to borrow $ 100,000 for five years when the interest rate is 5%. You will make yearly payments of $ 23,097.48 for 5 years. Assume that the loan was created on January 1, 2018 and totally repaid by December 31, 2022, after five equal, annual payments. Fill in the BOXES in the amortization table below. ENDING BEGINNING CASH INTEREST TO BALANCE PAYMENT EXPENSE PRINCIPAL BALANCE DATE YEAR 1 $100,000 $23,097.48 YEAR 2 $23,097.48 YEAR 3 $23,097.48 YEAR 4 $23,097.48 YEAR 5 $23,097.48