17-18 both xx

17. A long-term promissory note for $40,000 is taken out on June 15,2018 . The interest rate on the note is j4=7% and the note is due on Dec 15,2023 . What is the maturity value of the note? (A) $58,597.50 (B) $58,589.15 (C) $58,398.79 (D) $57,581.47 18. A person invests in a fund earning interest at j12=6%. The annual rate of inflation is 2% in year 1 , 2.5% in year 2,3.0% in year 3 and 3.5% in year 4 . What is the annual real interest rate, compounded once a year, earned over the 4 -year period? (A) 3,50% (B) 3.33% (C) 3.25% (D) 3.16%