1.You owe your parents $22,000 (in present day dollars) and want to repay them in equal amounts the first to occur in 2 years from today and the other in 8 years from today. If the interest rate is 12.2% per annum compounding monthly, what will be the amount of each repayment?

a.$18914

b.$28046

c.$58097

d.$27696

8.Which of the following is CORRECT? When discounting an amount to be received in one years time at a rate that is quoted as 12% compounding quarterly, we can:

Select one:

A.Discount the amount using an effective monthly rate of 1% where the number of periods is 12.

B.Discount the amount using an effective annual rate (EAR) of (1+0.03)^4-1 =12.5509% where number of periods is 1.

C.Discount the amount using the annual rate of 12% where number of periods is 1.

D.None of the above