Given the following cash flows, what is the total present value if the discount rate is 8%? Year 1 2 3 4 5 6 Cash Flow $50 $200 $0 SO SO $800 a. b. c. d. e. $482.72 $661.68 $697.25 $721.90 $852.83 2. What is the future value at the end of year 4 of the following set of cash flows? Assume an interest rate of 8%. Year 1 2 3 4 Cash Flow $1,000 -$1,000 $1,000 -$1,000 a. b. c. d. e. $0.00 $127.38 $173.31 $379.41 $3,312.13 a. 3. You have $500 that you would like to invest. You have 2 choices: Savings Account A which earns 8% compounded annually or Savings Account B which earns 7.75% compounded semiannually. Which would you choose and why? Account A because it has a higher effective annual rate b. Account A because the future value in one year is lower Account B because it has a higher effective annual rate d. Account B because the future value in one year is lower Account B because it has the higher quoted rate c. e. 4. You need to borrow $18,000 to buy a truck. The current loan rate is 9.9% compounded monthly and you want to pay the loan off in equal monthly payments over 5 years. What is your monthly payment? a. $363.39 b. $374.04 $381.56 d. $394.69 e. $455.66 c