Please answer a minimum of two (2) from the list below (your choice): 1. Define interest. What does compounding of interest mean? 2. What would cause the annual interest rate to be different from the annual effective rate or yield? 3. When asked to solve for a future value, what are the three pieces of information you will need? 4. What is an Annuity? What is the difference between an Ordinary Annuity and an Annuity Due? What is a Deferred Annuity? 5. What is the relationship between Table 2, Present Value of $1, and Table 4, Present Value of an Ordinary Annuity of $1 ? 6. Assume that you borrow $500 from a friend and promise to repay the loan in five equal annual installments beginning one year from today. Your friend wants to be reimbursed for the time value of money at an 8% annual rate. Explain how you would compute the required annual payment. Show your math of how calculate. 7. How is the time value of money concept incorporated into the valuation of certain leases