a:

You invest $3,000 and earn $863 over 21 months. What nominal rate of annual interest (compounding monthly) did you earn? (expressed as a percentage to two decimal places; don't use the % sign)

B:

A prize pays $15,000 each quarter for 4 years (16 payments)commencing in exactly 6 months' time. If the appropriate discount rate is 12.2% p.a compounding quarterly, the value of the prize today is (round to nearest cent; don't use $ sign or commas):

[HINT: the annuity is deferred]

Select one:

a.$182142.97

b.$187698.33

c.$1250473.31

d.$40435.82

C:

Jack borrows $500,000 for 10 years at a fixed interest rate ofi %p.a (EAR). If the debt is repaid in equal year-end payments over the 10 years, the amount of interest Jack pays in the first 5 years (years 1 to 5):

Select one:

a.Is less than the interest paid in the last 5 years

b.Is greater than the interest paid in the last 5 years

c.Is equal to the interest paid in the last 5 years