You get a twenty-year amortized loan of $100,000 with a 5% annual interest rate.What are the annual payments?

a.$ 8,718

b.$37,689

c.$ 4,762

d.$ 8,024

What is the present value of $100,000 to be received in 15 years with an annual discount rate of 5%?This amount is discounted monthly.

a.$ 25,000

b.$ 48,102

c.$ 47,310

d.$207,893

The discount rate can best be described as:

a.present value interest factor

b.an opportunity cost

c.prime rate of interest

d.real rate of interest

Compound interest can best be described as:

a.interest earned on the original principal

b.the discount rate

c.interest earned on interest only

d.interest earned on interest and interest earned on the original principal

You require an 8% annual return on all investments.You will receive $1,000, $2,000, and $3,000 respectively for the next three years (end of year) on a particular investment.What is the most you would be willing to pay for this investment?

a.$5,022

b.$2,577

c.$6,000

d.$4,763