Binder and Sons borrowed $138,000 for three years from their local bank ani nofm they are paying monthly payments that include both principal and inte debt by making installments payments, such as Binder and Sons s 10. Paying off is referred doing, is referred A. foreclosing on the debt. B. amortizing the debt. funding the deb. D. calling the debe E. refunding the debe an annuity today that will pay $1,000 a month for five years. He payment today. Allison purchased an annuity today that will She will receive her first payment one month from 11 Ted purchased received his first pay $1,000 a month for five years. today. Which A. Both annuities are of equal value today. B. Allison's annuity is an annuity due. C. Ted's annuity has a higher present value than Allison's. D. Allison's annuity has a higher present value than Ted's. E. Ted's annuity is an ordinary annuity one of the following statements is correct concerning these two annuities? Given a stated interest rate, which form of compounding will yield the highest effective rate of interest? 12. A. annual compounding B. monthly compounding C. daily compounding D. quarterly compounding E. semiannual compounding Your parents plan to give you $200 a month for four years while you are in college. At a discount rate of 6 percent, compounded monthly, what are these payments worth to you when you first start college? (ordinary annuity 13. A. $8,797.40 B. $8,409.56 C. $8,198.79 D. $8,516.06 E. $8,279.32 14. Olivia is willing to pay $250 a month for four years for a car payment. If the annual interest rate is 6 percent, compounded monthly, and she has a cash down payment of $4,000, what price car can she afford to purchase? (car price cash down+loan) A. $14,645.08 B. $10,549.07 C. $12,533.84 D. $10,686.82 E. $11,342.05 #1340160 3IPage