What is the value of the following cash flows at the end of year 3 if the interest rate is9 percent? The cash flows occur at the end of each year. You are considering two insurance settlement offers. The first offer includes annual payments of $5,000, and $10,000 over the next three years, respectively. The other is the payment of one lump sum amount today. You are trying to decide which offer to accept given the fact that your discount rate is 5 percent. What is the minimum amount that you that today if you are to select the lump sum offer? $19, 877.67 $20, 203.00 $21, 213.15 $23.387.50 $24558, 88 What is the annual percentage rate on a loan with a stated rate of 2 percent per quarter? 2.00 percent 2.71 percent 4.04 percent 8.00 percent 8.24 percent The Good Life Insurance Co wants to sell you an annuity which will pay you $500 per quarter for 25 years. You want to earn a minimum annual rate too return of 5.5 percent. What is the most you are willing to pay as a lump sum today to buy this annuity? $26, 988.16 $27, 082.94 27, 455.33 $28, 450.67 You borrow $5, 600 to buy a car. The terms of the loan call for monthly payments for four years at a 59 percent annual rate of interest. What is the amount of monthly payment? $103.22 $103.73 $130.62 $131.26 $133.04