1) How much is the EAR of investment for 1 year at rate 14.20%? ____%

a)15 b)15.25 c)15.5 d)16

2) "The present value of an annuity of payment every two years is $5,000 and future value is zero. I will receive payments for 12 years. The interest rate is 2%. How much is each payment is each payment?"

a)862.74 b)472.8 c)892.63 d)955

3) "The price of an annuity of payments every two years is $5,855 Future value is 0. Each payment is 2,000 for 16 years. How much is the 1-year interest rate you are earning?"

a)29.96 b)14 c)33.83 d)14.98

4) "You invest now $500 at 12% interest continuously and receive $4,334. How many years is the investment? _____years

a)18

b)16.5

c)19.2

d)20

5) The present value of an annuity of payment every two years is $5,500 and future value is zero. I will receive payments for 14 years. The interest rate is 6%. How much is each payment is each payment?"

a)1,219 b)591.17 c)985.24 d)882.78