What is the PV of $500 per year for 8 years if the required return is 8.5% (assume the $500 payments come at the end of each of the next 8 years)?

1. 3079.93
2. 260.33
3. 2819.59
4. 3000.79
5. 62.5

What is the FV at the end of year 6 of $1500 put in an account today if the return is 7% per year?

1. 2251.10
2. 2130.00
3. 999.51
4. 8149.32
5. 10,729.94

Bank A charges 14% APR on auto loans with monthly compounding. What is the Effective Annual Rate (EAR) ? (In other words, what is the EAR for a 14% APR with monthly compounding?)

1. 14.93%
2. 1.66%
3. 16.36%
4. 10.12%
5. insufficient information to answer this question.