A.. What's the present value of $2,500 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually? Select the correct answer.

a. $1,593.62 b. $1,599.02 c. $1,615.22 d. $1,604.42 e. $1,609.82

B. American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 23.50%, with interest paid monthly, what is the card's EFF%?

Select the correct answer.

a. 26.20%

b. 20.80%

c. 23.50%

d. 31.60%

e. 28.90%

C. Billy Thornton borrowed $15,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month?

Select the correct answer.

a. $93.23

b. $85.43

c. $88.03

d. $95.83

e. $90.63

D, A new investment opportunity for you is an annuity that pays $1,250 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

Select the correct answer.

a. $3,545.30

b. $3,583.10

c. $3,595.70

d. $3,557.90

e. $3,570.50