1. Your car loan requires payments of $200 per month for the first year and payments of $400 per month during the second year. The annual interest rate is 12% and payments begin in one month. What is the present value of this 2-year loan? a) $6,246.34 b) $6,389.78 c) $6,428.57 d) $6,753.05 2. Three thousand dollars is deposited into an account paying 10% annually to provide three annual withdrawals of $1,206.34 beginning in one year. How much remains in the account after the second payment has been withdrawn? a) $1,326.97 b) $1,206.34 c) $1,096.69 d) $587.32 3. With $1.5 million in an account expected to earn 8% annually over the retiree's 30 years of life expectancy, what annual annuity can be withdrawn, beginning today? a) $112,148.50 b) $120,000.00 c) $123,371.44 d) $133,241.15 4. Would a depositor prefer an APR of 8% with monthly compounding or an APR of 8.5% with semiannual compounding? a) 8.0% with monthly compounding b) 8.5% with semi-annual compounding c) The depositor would be indifferent. d) The time period must be known to select the preferred account