You lend $1000 to a friend at an annual rate of interest 8.25% for three years. That is, interest will be compounded annually. what is the total amount of interest in the third year for this loan?

a) $96.67

b) $268.48

c) $302.83

d) $158.2

Q2) what is the present value of the following payment stream, discounted 6% annually; $1000 at the end of year 1, $2000 at the end of year 2, and $3000 at the end of year 3?

a) $5242.25

b) $5520.00

c) $5022.10

d) $5423.87