13. All else equal, if you deposit a certain amount money today, say, $500, for ten (10) years, the future value of that amount will be highest if the interest earned on such investments is A. daily B. weekly C. monthly D. quarterly E. Annually 14. Suppose someone offered you your choice of two equally risky annuities, each paying $5,000 per year for 5 years. One is an annuity due (payments made at the beginning of the year), while the other is a regular (or deferred) annuity (payments made at the end of the year). If you are a rational wealth-maximizing investor which annuity would you choose? a. The annuity due. b. The deferred annuity. c. Either one, because as the problem is set up, they have the same present value. d. Without information about the appropriate interest rate, we cannot find the values of the two annuities, hence we cannot tell which is better. e. The annuity due;, however, if the payments on both were doubled to $10,000, the deferred annuity would be preferred. 15. What is the amount of each annuity payment for a 5-year $10,000 loan if the interest rate is 10 percent? (Assume the first payment will be made a year from today) A. $2404.2 B. $2638.0 C. $3002.0 D. $3153.8 E. $3468.7 16. Mr. Brown makes annual end-of-year payments of $2.229.20 on a six-year loan with a 7 percent interest rate. The original principal amount was (round to the nearest dollar) A. $13,375 B. $10,625 C. $12,739 D. $16,771 17, what is the present value of the following payment stream, discounted at 8% annually: $1,000 at the end of year l,$2,000 at the end of year 2, and $3,000 at the end of year 3? A. $5,022.11 B. $5,144.03 C. $5,423.87 D. $5,520.00 Is. A stram of unlimited numbe of alah paymens is temed: A. an annuity