13. You want to buy a new sports car 3 years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the 3rd deposit, 3 years from now? *

A) $11,973

B) $12,603

C) $13,267

D) $13,930

None of the above

14. You are considering borrowing $10,000 for 3 years at an annual interest rate of 6%. The loan agreement calls for 3 equal payments, to be paid at the end of each of the next3 years. (Payments include both principal and interest.). How much would the annual payment be? *

A) $2,674.

B) $2,890.

C) $3,741.

D) $4,020.

None of the above

15. You are given two choices of investments, Investment A and Investment B. Both investments have the same future cash flows. Investment A has a discount rate of 4%, and Investment B has a discount rate of 5%. Which of the following is true? *

A) The present value of cash flows in Investment A is higher than the present value of cash flows in Investment B.

B) The present value of cash flows in Investment A is lower than the present value of cash flows in Investment B.

C) The present value of cash flows in Investment A is equal to the present value of cash flows in Investment B.

D) No comparison can be madewe need to know the cash flows to calculate the present value.

None of the above

16. Jack has $375,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account? *

A) $28,243.21

B) $29,729.70

C) $31,294.42

D) $32,859.14

None of the above