1. Find the amount that should be invested now to accumulate the following amount, if money is compounded as indicated. $16,900 at 8% compounded annually for 11 years

A) $7248.12                    B) $7827.97          C) $9651.88          D) 39,404.70

2. Find the effective rate corresponding to the given nominal rate. Round results to the nearest 0.01 percentage points. 10% compounded monthly

A) 10.25%             B) 10.38%             C) 2.14%               D) 10.47%

3. Find the future value of the following ordinary annuity.

R= $7500, i = 10% compounded semiannually for 4 years

A) $61,065.06       B) $99,825.00       C) $71,618.32       D) $221,618.32

4. In order to purchase a home, a family borrows $97,000 at 8.6% for 15 years. What is their monthly payment if interest is compounded monthly?

A)      $695.17       B) $6843.60          C) $1106.20          D) $960.89

5. Find the present value of the future amount: $26,000 at 6% compounded semi-annually for 3 years.

A) $21774.59        B) $23793.68        C) $21830.10        D) $31045.36