1. You are comparing two annuities. Annity A pay $100 at the end of each month for 5 years. Annuit B pays $100 at the beginning of each month for 5 years. The rate of return on both annuities is 6 percent. Which one of the following statements is correct given this information? Explanation

2. You need $10,000 in seven years. Which one of the following requires the highest investment today? Explanation

A. A bank account paying 5.5% compounded annually.

B. A bank account paying 5% compounded annually.

C. A bank account paying 5.5% simple interest.