6. A $50,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT? a. The annual payments would be larger if the interest rate were lower. b. If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan. c. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower. d. The last payment would have a higher proportion of interest than the first payment. e. The proportion of interest versus principal repayment would be the same for each of the 7 payments. 7. Jose now has $500. How much would he have after 6 years if he leaves it invested at an annual interest rate of 5.1% ? a. $828.88 b. $667.15 c. $808.66 d. $673.89 e. $512.15 8. You want to buy a new sports car 3 years from now, and you plan to save $6,700 per year, beginning one year from today. You will deposit your savings in an account that pays an annual interest rate of 5.2%. How much will you have jus after you make the 3 rd deposit, 3 years from now (at t=3 )? a. $24,761.08 b. $26,454.15 c. $17,565.55 d. 521,163.32 e. $22,221.48 9. You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $2,100 per year, beginning immediately. You will make 4 deposits in an account that pays 5.7% interest annually. Under these assumptions, how much will you have 4 years from today (att=4) ? a. $10,633.92 b. $10,730.59 c. 58,700.48 d. $9,667.20 e. $8,507.13 10. Bob has $2,500 invested in a bank that pays 6.6% interest annually. How long will it take for his funds to double? a. 12.04 years b. 11.17 years c. 10.85 years d. 12.80 years e. 9.44 years