Q1. jack deposits the following amounts in a savings plan which pays 4.3% per annum, compounded monthly:

• $2376 today,
• $1500 at the end of year two and
• $2400 at the end of year three.

The amount he will have in exactly 3 years is closest to:

a. $6668.32

b. $6554.77

c. $6736.99

d. $6660.37

Q2.

Jill borrows $17,000 from you today. She agrees to repay you in two equal amounts, the first to occur in 3 years from today and the other in 7 years from today. If the interest rate is 12.6% per annum compounding monthly, what will be the amount of each repayment?

a.$15420

b.$24761

c.$24270

d.$40879

Q3. You have the alternative of paying for university fees today for a payment of $16,000 or, you can select a payment plan where you pay $8,000 in 11 months from today and another $9,000 in exactly 21 months from today. If the interest rate is 14.3%p.a. compounding monthly, what is the advantage that the payment plan has over the upfront payment?

(expressed in present day value rounded to the nearest cent; do not show $ sign or comma separators; if the payment plan is more costly than $16,000 today, your answer will show a negative eg. -300.35)

Q4. You inherit $518,000. You can receive the $518,000 in one lump sum payment today or, alternatively, receive two amounts: $318,000 in 7 months and $220,000 in 21 months from today. If you can earn 8.4% per annum compounding monthly on your monies, what is the value of the option to receive two payments (in present day value)?

(to nearest whole dollar,; dont use $ sign or commas)

Thank you!!