1A) You can invest funds at 3.8% (APR). You are considering buying an annuity and are comparing two alternatives. Both of these are 11 years in length, with the same number of monthly payments (to you) of $6208. The first instrument pays at the end of the month while the second pays at the beginning of the month. You believe that the second alternative must be worth more as the money comes to you faster, but how much more is it worth to you?

a. 2450

b. 2118

c. 3126

d. 1685

e. 1812

1B)

Your firm has total assets of 24564, fixed assets of 17194.8, long term debt of 17466, and note-payables (short-term) of 3634. What is the amount of net working capital? (Round to the nearest dollar)

a. 3388

b. 4200

c. 4044

d. 3354

e. 3735

1C)

David invested $12808 in an investment account that will pay him 8% (APR) over the next 27 years with monthly compounded interest. How much will he have in his account after 27 years assuming all interest is reinvested? (Round answer to the nearest penny)

a. 107190.68

b. 115169.68

c. 104652.68

d. 115697.68

e. 110266.68

ANSWER