6. You are going to withdraw $1,000 at the end of each year for the next three years from an account that pays interest at a rate of 8% compounded annually. The account balance will reduce to zero when the last withdrawal is made. How much money will be in the account immediately after the second withdrawal is made? A) S925.93 B) $977.10 C) $982.29 D) $1,000.00 E) S2,000.00 7. At the end of each year for the next 10 years you will receive cash flows of $50. If the appropriate discount rate is 5.5%, how much would you pay for the annuity? A) S259.82 B) $299.02 C) $338.99 D) $376.88 E) $379.16 Your brother-in-law borrowed $2,000 from you four years ago and then disappeared. Yesterday he returned and expressed a desire to pay back the loan, including the interest accrued. Assuming that you had agreed to charge him 10%, and assuming that he wishes to make five equal annual payments beginning in one year, how much would your brother-in-law have to pay you annually in order to pay off the debt? (Assume that the loan continues to accrue interest at 10% per year.) A) $697.43 B) S738.63 C) $751.46 D) $772.45 E) $798.24 . Which one of the following statements is correct? A) The future value of $100 invested at 6% simple interest increases at a constant rate as the period of time increases. B) There is an inverse relationship between the future value of a lump sum investment and the length of the investment period. C) The future value of $100 invested at 6%, compounded annually, increases over time in an exponential manner. D) Because time is the exponent in the future value formula, the length of an investment period has minimal effect on the future value of the investment E) The future value decreases as the period of time increases, all else constant