A) One investment offers cash flows of $4,000, $5,000 and $6,000 in years 1, 2 and 3 respectively, while another investment offers cash flows of $4,000, $4,000 and $4,000. Which investment (the first or the second) is an annuity and why?

B) Karen invested $4,000 in an account that earns 6% per year. How much will the investment grow to in four years time? Please show calculations.

C) You borrow $3,000 for 3 years at a 6% interest with annual payments. Calculate your payment: