Question: 1.Duff's Brewery purchased their crowler equipment using a five-year note. At maturity, the value of the note will be $20,000. The annual discount rate is

1.Duff's Brewery purchased their crowler equipment using a five-year note. At maturity, the value of the note will be $20,000. The annual discount rate is 8%, and payments are made monthly. How much did the company borrow?

A. 13,612

B. 13,242

C. 19,346

D. 12,000

2. What is the present value of a series of annuity payments of $7,000 each for 12 years made annually with an annual discount rate of 5% with the first payment starting today?

A. $3,898

B. $65,145

C. $62,043

D. $11,200

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