1.)A 20-year annuity pays $1,700 per month, and payments are made at the end of each month. The interest rate is 15 percent compounded monthly for the first five years and 12 percent compounded monthly thereafter. What is the present value of the annuity?

A. $1,664,157.62

B. $213,105.63

C. $138,679.80

D. $135,906.21

E. $141,453.40

2.)You want to buy a new sports car from Muscle Motors for $39,000. The contract is in the form of an annuity due for 48 months at an APR of 9.50 percent. What will your monthly payment be?

A. $972.11

B. $923.50

C. $979.80

D. $952.66

E. $991.55

3.) You are looking at a one-year loan of $15,000. The interest rate is quoted as 12 percent plus 3 points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay 3 points to the lender up front and repay the loan later with 12 percent interest. What rate would you actually be paying here?

A. 13.92%

B. 15.46%

C. 8.64%

D. 17.01%

E. 12.00%