11. You have your choice of two investment accounts, Investment A is a 12 year annuity that features end of month $1,600 payments and has an interest rate of 7.5 percent compounded monthly. Investment B is a lump sum investment with an interest rate of 72 percent compounded continuously, also good for 12 years. How much money would you need to invest in B today for it to be worth as much as Investment A 12 years from now? a. $119,988 b. $147,314 c. $156,745 d. S179,694 12. You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 2.4 percent per year, compounded monthly for the first six months increasing thereafter to 12 percent compounded monthly. Assuming you transfer the $8,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year? a. $492.16 c. $675.69 b. $594.58 d. $760.23 (The following information is for the next three questions.) Lorkay Seidens Inc. just borrowed $100,000. The loan is to be repaid in equal installments at the end of each of the next twenty years, and the interest rate is ten percent. 13. What is the annual payment that the company has to make? a. $8,137.27 b. $9,554.78 c. $10,045.14 d. $11,745.96 14. What is the balance of the loan after eight payments? a. $72,173.84 b. $76,290.73 c. $80,033.35 d. $83.435.74 15. What portion of the thirteenth payment is used to pay for principal? a. $4,124.90 b. $5,479.58 c. $6,343.57 d. $7.961.56