A car buyer is considering two loans. Both are at 5%. Which loan will result in the lower monthly payment?

		the 4-year loan
		the 5-year loan
		both loans will have the same payment because the interest rate is the same

A farmer is putting a new well on his property. He anticipates that the well will provide $3,000 in year one, $1000 in year three and cost him $500 in year four to close the well. If the flows are discounted at 8% annually, what is the present value of the project?

		$3,204.10
		$3,939.11
		$3,238.20
		$4,032.03