1. Suppose you bought a condo and took out a 30-year, $100,000 amortized loan at a nominal annual rate of 8% with annual end-of-year payments. How much interest would you pay during the 2^nd year?

a. $7,929.38

b. $8,882.74

c. $9,332.43

d. $9,565.74

e. $9,804.88

2. Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. You will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals. If the first withdrawal is made immediately, how large would each withdrawal be so there would be no funds remaining in the account after the 4^th withdrawal?

a. $12,808.29

b. $13,204.43

c. $13,612.81

d. $14,021.19

e. $14,441.83

3. Collins Corporation borrowed $10 million at a nominal (or stated) rate of 10%, simple interest, based on a 365-day year. Interest must be paid at the end of each month. How much interest must Collins pay at the end of a 30-day month?

a. $77,358.25

b. $78,936.99

c. $80,547.94

d. $82,191.78

e. $83,835.62