(A). What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 10%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67) Year 0 cash flow = 900 Year 1 cash flow = 1100 Year 2 cash flow = 1700 Year 3 cash flow = 1100

(B). Poor Dog, Inc. borrowed $170,000 from the bank today. They must repay this money over the next 4 years by making monthly payments of $5005. What is the interest rate on the loan? (Round to nearest 100th of a percent and enter your answer as an annual percentage rate, for example, as 12.34)

(C).

Which of the following will increase the effective annual rate?

I. Increasing the frequency of the compounding

II. Decreasing the frequency of the compounding

III. Increasing the annual percentage rate

IV. Decreasing the annual percentage rate

Select one:

a.

I only

b.

II only

c.

I and III only

d.

I and IV only

e.

II and IV only

f.

III only

g.

IV only

h.

I, II, and III only

i.

II, III, and IV only