Assuming an interest rate of $8\%,$$$400$ received at the end of each of the next $3$ years is equal to how much today?: $*$

a$.$ $$660$

b$.$ $$668$

c$.$ $$1,013$

d$.$ $$1,031$

$$400$ is to be received at the end of year $1,$$$800$ at the end of $2$ years and $$600$ at the end of $3$ years. Assuming an interest rate of $6\%$ what are there receipts equal to today? $*$

a$.$ $$1,593$

b$.$ $$1,625$

c$.$ $$1,761$

d$.$ $$1,800$

What is the effective annual rate of interest for $12\%$ compounded monthly?: $*$

a$.1\%$

b$.12\mathrm{.}00\%$

c$.12\mathrm{.}60\%$

d$.12\mathrm{.}68\%$

You have decided to save for a new car $6$ years from now and you expect to be paying $$40,000$ for the car at that time. You will deposit money into your bank account which will earn $3\%$ compounded annually. How much do you need to save each year $($at year$-$end$)$ to have the $$40,000$ if your first deposit is made one year from now and your final deposit is made at the time you purchase your car?: $*$

a$.$ $$6,004$

b$.$ $$6,184$

c$.$ $$6,667$

d$.$ $$7,534$

The following information for Company ABC's balance sheet is to be used to solve questions $5$ and $6.$

$5.$ What are the expected returns for the two investments?: $*$

$\backslash$table$[[$Investment A$,$Investment B$],[$Probability$,$Return,Probability,Return$],[0\mathrm{.}25,2\%,0\mathrm{.}10,5\%$