3.If you borrowed $1,000 for a 2 year period, with a simple interest rate of 5% per annum, the total interest to be paid would be

$100

None of the other alternatives are correct

$1,000

$500

$300

4.Martha borrows $50,000 from the Mighty Bank today and the Bank requests her to repay her loan in four equal payments along with 12% interest. Each of the four payments must be paid at the end of the next four years. What is the amount of each payment? Please round to the nearest whole number.

$16,462

$38,130 plus 12% interest

$10,462

$10,462 plus 12% interest

$16,462 plus 12% interest

5

You need $150,000 five years from now to be able to pay off your mortgage. If you are earning 8% interest on your money at the bank. How much do you need to invest at the end of each year, so that at the end of the fifth year you are able to pay off your mortgage?

None of the other alternatives are correct

$16,279

$50,000

$102,089

$25,568

6Your friend has just turned 50 years old, and has asked you for your advice. He is starting to think about retirement and would like to withdraw from the bank $15,000 per year for 15 years after he turns 65 years of age. How much does your friend have to deposit for the next 15 years to ensure that there is enough money to last for 15 years after he retires? The bank has a special retirement fund that will pay 6% per year for the first 15 years and 8% per year after your friend turns 65 years of age for retirement income. (Rounded to the nearest dollar)

None of the other alternatives are correct

$4,911

$5,516

$6,259

$5,365

7Donald Frump invests an inheritance of $50,000 into an investment account that pays simple interest at 6% per annum and leaves it there for 48 months. The investment company sends him a cheque after 48 months. He immediately takes this cheque and buys an annuity from an insurance company that sends him an annual cheque for 10 years. The annuity is based on an effective interest rate of 6%, money compounded annually. How much will the annual cheque be (rounded to the nearest dollar)?

$6,676

$8,424

Cannot be determined from the data provided

$9,562

$10,888

9A company is obligated to make annual payments to a pension fund at the end of the next three years. The present value of those payments is to be $100,000. Which of the following amounts is nearest the amount which must be paid annually if the fund is projected to earn interest at the rate of 8% per year?

$38,803

$41,990

$26,461

$33,333

None of the other alternatives are correct