1. Kylie, Inc. is buying a camel. The original cost on January 1, 2006 was $10,000. Kylie put $1,500 down and is making annual payments on December 31st of $1,838.68 which include interest at 8%. If Kylie is properly amortizing this purchase, the interest expense for 2006 (first year) is

$ 1,351.48

$ 587.31

$ 680.00

$ 487.20

Some other number

2. Still on Kylie- Assuming Kylie is amortizing the loan correctly, the Principal Balance at the end of 2007 (end of the second year) would have been

$ 7,341.32

$ 6,089.95

$ 4,738.47

$ 4,822.64

Some other number

3. Amanda wants to have $1,000,000 in the bank in ten years. If the bank pays interest at 8% compounded semi-annually, how much does she need to deposit today to reach her goal?

$ 391,510.78

$ 311,203.69

$ 463,193.49

$ 456,386.95

Some other number