1. A Certificate Deposit will be worth $60,000 in five years when it matures. If your required rate of return is 12%, how much you are willing to pay for this CD? Assuming compounding annually.

a. 35,584.13

b. 34,045.61

c. 33,740.97

d. 32,354.26

2. A company has just received a huge donation. It would like to make payments for its insurance for two years in advance. Previously, it has paid $91.5 in premiums every week. Assuming interest rate of 12%, what single sum of money should it pay? (Note: the insurance payments are due at the beginning of the period of coverage, and compounding weekly). This is annuity due.

a. 8,236.45

b. 8,695.11

c. 8,471.08