1.) You are calculating an NPV with monthly payments. The annual interest rate is 8%. What rate would you use in the formula? a. .0067 b. 8 c. 96 d.

2.) An owner of a bakery is trying to find out the payment on a commercial loan. She would use the original loan amount as the PV, the number of years as the NPER, the interest rate for RATE. What would she input for FV?

PV = ($20,000)

NPER = 5

RATE = 8%

FV = ?

a.0

b.($20,000)

c.$20,000

d.$10,000

3.) A loan repayment is monthly for the next 5 years. What number would you use for the periods (NPER) in the PV formula?

a.60

b.5

c.12

d.48