1. A loan for $7,000 is to be repaid by instalments at the end of each quarter for 5 years. The quarterly instalment is more likely to approximate Select one: Select one: a. $300 b. $200 c. $180 d. $400
2. A factory lease for 5 years where the payments are due at the end of each month would be an example of a(n):

Select one:

A.

perpetuity.

B.

annuity due.

C.

ordinary annuity.

D.

deferred annuity.

3.Jack wants to buy a boat today today but has realised that if he takes out a loan he can only repay $800 quarterly, with payments made at the beginning of each quarter, over the next 7 years. How much can he spend on his boat today if the interest rate is 5.1% per annum compounded quarterly?

a.

$18977.52

b.

$18738.61

c.

$4612.37

d.

$4847.60