Question: Question 3 You borrowed $1,500 at 6% compounded annually. Your payments are $143.17 at the end of each year. How many years will you make

Question 3

You borrowed $1,500 at 6% compounded annually. Your payments are $143.17 at the end of each year. How many years will you make payments on the loan?

Select one:

a. 17 years

b. 19 years

c. forever

d. 20 years

e. 18 years

Question 4

You just won the lottery. You and your heirs will receive $26,000 per year forever, beginning one year from now. What is the present value of your winnings at an 8% discount rate?

Select one:

a. $325,000

b. $312,500

c. $337,500

d. $200,000

e. $182,500

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