1. A Certificate Deposit will be worth $63,250 in five years when it matures. If your required rate of return is 15%, how much you are willing to pay for this CD? Assuming compounding annually.

a. 37,598.66

b. 39,879.47

c. 31,446.43

d. 29,661.33

A company has just received a huge donation. It would like to make payments for its insurance for three years in advance. Previously, it has paid $91.5 in premiums every week. Assuming interest rate of 10%, what single sum of money should it pay? (Note: the insurance payments are due at the beginning of the period of coverage, and compounding weekly). This is annuity due.

a. 12,345.41

b. 13,071.29

c. 14,715.66

d. 15,840.33

How much interest will you pay in the 13th year of a $100,000, 8.5%, 25 year mortgage, assuming annual compounding?

a. 5,398.142

b. 5,853.118

c. 6,387.717

d. 6,638.615