1. Find the future value of the following investment: the interest rate is 8 percent per year, compounding annually:

A. $100 is invested each year beginning one year from now and continuing through year 9, when the proceeds are withdrawn. (1 point)

B. $100 is invested each year starting today and continuing through year 9, when the proceeds are withdrawn. (1 points)

C. $100 is invested each year beginning one year from now and continuing through year 8. The proceeds are to be withdrawn in year 9. (1 points)

2. Assume you are to receive a 10-year annuity with annuity payments of $10,000. The first payment will be received at the end of year 5, and the last payment will be received at the end of year 14. You will invest each payment in an account that pays 6 percent. What will be the value in your account at the end of Year 22?

3. If you borrow $5,000 at 12% APR for 18 months, what will your monthly payment be? What is the effective interest rate on this loan?

4. You want to borrow $20,000 for three years. The interest is 8 percent a year. You and lender agree that the interest on the $20,000 will be $4,800 for three years. So, the lender deducts this amount from the loan and gives you $15,200. You repay the $20,000 in three years, thereby paying $4,800 interest as agreed. What is the effective annual interest rate?

5. Construct a 10-year amortizing loan table with 8 percent interest rate. You borrow $30,000 initially and repay it in your ten equal annual year-end payments. Show only the first three years.