Clarence borrowed $6,000 from you 7 years ago. You are charging Clarence 4% interest. How much does Clarence owe you, today? (No payments have been made.) Choose the closest answer. $7, 680 $47, 390 $9, 560 $7, 896 $4, 320 Henrie purchased a stereo from his cousin. Henrie will pay $250 per year for 4 years. If Henrie''s payments include interest at 9%, what was the purchase price of the stereo? Choose the closest answer. $810 $1,000 $910 $1, 143 $870 Julie and Heather bought a winning lottery ticket. Julie chose to receive $1, 700,000 today. Heather chose to receive her winnings in 3 equal annual payments of $675,000 each. Who made the better decision and by how much (considering only the time-value of money)? Assume an interest rate of 4% and compute the difference between the alternatives in today's dollars. Choose the closest answer. Heather, by $325,000 Julie, by $233, 894 Heather, By $167, 425 Heather, by $173, 186 Heather, by $100, 225 You put $60,000 in the bank today to fund your son's college account. He will make 4 equal withdrawals, starting at the end of this year. Assuming the account earns 6% interest, how much can he withdraw each year? Choose the closest answer. $14, 400 $18, 600 $13, 715 $15,000 $17, 315