1. You are valuing an investment that will pay you $22,000 per year for the first 9 years, $26,000 per year for the next 12 years, and $39,000 per year the following 15 years (all payments are at the end of each year). If the appropriate annual discount rate is 8.00%, what is the value of the investment to you today?

	$234,742.62
	$301,764.53
	$1,095,000.00
	$751,529.04
	$1,218,954.00

2. You plan to buy a car that has a total "drive-out" cost of $31,900. You will make a down payment of $4,785. The remainder of the car's cost will be financed over a period of 5 years. You will repay the loan by making equal monthly payments. Your quoted annual interest rate is 13% with monthly compounding of interest. (The first payment will be due one month after the purchase date.) What will your monthly payment be?

	$574.81
	$610.34
	$642.43
	$725.31
	$616.95

3. You are considering either leasing or purchasing a car. You notice an ad that says you can lease the car you want for $419.00 per month. The lease term is 48 months with the first payment due at inception of the lease. You must also make an additional down payment of $2,280. The ad also says that the residual value of the vehicle is $15,193. The list price of the vehicle is $27,577, but after much research, you have concluded that you could buy the car for a total "drive-out" price of $25,300. What is the quoted annual interest rate you are actually paying with the lease?

	12.30%
	15.68%
	16.01%
	12.06%
	12.30%