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4 What annual payment (to the nearest $1) is required to pay off a loan of $5,000 at 5% in 5 years? (A) $1,000 (B)
4 What annual payment (to the nearest $1) is required to pay off a loan of $5,000 at 5% in 5 years? (A) $1,000 (B) $1,155 (C) $2500 (D) $5000 5 For problem 4 above, what is the balance at the end of year 5? (A) $5,000.00 (B) $3,839.94 (C) $2,621.88 (D) $0 6 You are considering investing in a company that makes cell phones. It will take three years for the business to sell its first product. You can expect to make $200k in year 1 and $600k in each of years 4, 5 and 6. Your return on alternative investments is 6%. How much can you afford to invest (to the nearest $10k)? (A) $2.00 million (B) $2 x 1.0644 million (C) $1.54 million (D) $200k
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