Exercise n3: present value of an annuity You are given three investment alternatives to analyze. The cas from these three investments are as follows YEAR INVESTA 1 10000 2 10000 3 10000 4 10000 5 10000 INVESTB INVESTC 1000 10000 5000 10000 10000 10000 10000 10000 Assuming a 5% interest rate (discount rate), find the present va .t=0) of each investment xercise n4 : Effective annual rate ou want to borrow $1,000 from a friend for one year, and you pose to pay her $1,120 at the end of the year. She agrees to le $1,000, but she wants you to pay her $10 of interest at the ei 7 of the first 11 months plus $1,010 at the end of the 1?" much higher is the effective no.1