Question 15 (3.3 points) Fresh out of college, Tara is negotiating with her new employer. The employer offers two options: A signing bonus of $10,000 today or a lump sum payment of $11,000 three years from now. If Tara can earn 4% annually on her investment, she should A) Take the signing bonus because it has the higher future value B) Take the lump sum payment because it has the lower future value C) Take the signing bonus because it has the lower future value D) Take the lump sum payment because it has the higher future value Question 16 (3.3 points) Jose has a 15-year mortgage of $250,000 from his bank. The mortgage calls for equal monthly repayments and carries an annual percentage rate (APR) of 3%. Right after Jose makes his first repayment, how much in principal does Jose still owe the bank? A) $248,274 B) $249,899 c) $248,899 D) $249,274 Question 17 (3.3 points) A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $1,000 per month for the next 2 years and then $2,000 per month for 2 years after that. If the bank charges a 6% annual percentage rate (APR), how much would it be willing to lend to the business owner? A) $61,480 B) $62,598 C) $62,074 D) $63,143 Question 18 (3.3 points) Treasury securities have no risk. The interests on Treasury securities are exempted from income tax. A) Default; state B) Default; federal C) Interest rate; federal D) Interest rate; state