1 The interest rate is 4%. You are offered either $1,000 now or $1,100 two years from now. Which do you prefer? (A) (B) (C) (D) $1,000 now $1,100 two years from now They are worth the same today so I will take either one They are worth the same two years from now so I will take either one 2 The interest rate is 5%. How much is $1,000 worth in 4 years (to the nearest dollar)? (A) (B) (C) (D) $1,000 $1,000 (A/PV, 596, 4) $1,219 $250 3 You borrow $5,000 at 10% for 4 years. How much is the balance (to the nearest $1) on your loan at the end of year 2 if you pay $1,577.35 per year? (A) $5,000 (B) $2,500 (C) $2,737 (D) SO