a: you owe your parents $18,000 (in present day dollars) and want to repay them in equal amounts the first to occur in 4 years from today and the other in 6 years from today. If the interest rate is 9.8% per annum compounding monthly, what will be the amount of each repayment?

Select one:

a.$14592

b.$26597

c.$32330

d.$26163

b:You have the alternative of paying for university fees today for a payment of $16,000 or, you can select a payment plan where you pay $6,000 in 8 months from today and another $9,000 in exactly 19 months from today. If the interest rate is 14.6%p.a. compounding monthly, what isthe advantage that the payment plan has over the upfront payment?

(expressed in present day value rounded to the nearest cent; do not show $ sign or comma separators; if the payment plan is more costly than $16,000 today, your answer will show a negative eg. -300.35)

C:Which of the following is TRUE about simple interest?

Select one:

A.We never use simple interest rates in financial calculations.

B.If we have an effective annual rate (EAR) of return for 3 years, we can just divide the EAR by 3 to get the equivalent annual simple rate of return.

C.Simple interest does not allow for any interest-on-interest.

D.Both B and C are correct