1)Rachael expects to receive a payment of $5,000 at the end of each year for the next 15 years. What is the present value of these 15 payments,assuming that the appropriate discount rate is 10% compounded annually?

$1,197

$25,094

$17,954

$38,030

$75,000

$158,862

Ryan has just deposited $10,000 in a bank account. The account pays 12% interest, compounded quarterly. How much will Ryan have in the account at the end of seven years? (Round your answer to the nearest dollar.)

$4,371

$4,523

$18,400

$22,107

$22,879

$29,987

2)Taraz Aina is obligated to make the following payments to a loan company:

Timing Amount

Right Now $7,500

At the end of one $15,000

year

At the end of two $22,500

years

At the end of three $75,000

years

The interest rate on the loan is 12% compounded annually, and there is no penalty for early payment. How much must Taraz Aina payright nowin order to completely satisfy her obligation under this loan? Note: The amount she must pay right now includes the $7,500 that is due right now.

$92,213

$85,414

$96,073

$121,494

$129,553

3)On April 1, Joseph Han purchased a car with a cash price of $50,000.He paid 25% ($12,500) down and agreed to pay the remainder in monthly payments over ten years. The first payment on this $37,500 loan will be on May 1. The interest rate on the loan is 9% compounded monthly. What is the amount of each monthly payment?

$193.78

$475.03

$3,375.11

$5,843.25

$486.94.

$593.75

On July 1, Homer Simpson signed a 30-year home mortgage contract in the amount of $300,000. The interest rate on the mortgage is 4.35%compounded monthly, making the monthly payments $1,493.44. The first payment is due on August 1 and the second payment is due on September 1. Homer is a dedicated accountant, so he records all of his household transactions in debit-and-credit format. The journal entry to record the second payment on September 1 includes

A DEBIT to Interest Expense of 1,087.50.

A DEBIT to Interest Expense of 1,086.03.

A DEBIT to Interest Expense of 407.41

.A DEBIT to Mortgage Payable of 1,087.50.

A DEBIT to Mortgage Payable of 1,086.03.

A DEBIT to Mortgage Payable of 405.94.