Question 7 (3.3 points) Betty is saving for the down payment of a house. She has $16,000 to invest today and can earn 4% annually on her investment. If Betty needs 20% of the house price in down payment, what will be the house price that Betty can afford in 6 years? A) $93,676 OB) $101,226 C) $114,952 D) $81,629 Question 8 (3.3 points) If Jeff does not pay his credit card bill in full, he will have to pay a 19.00% annual percentage rate (APR), compounded daily, on his remaining balance. Given 365 days in one year, the APR would be equivalent to an effective annual rate (EAR) of A) 20.92% B) 17.35% C) 18.53% D) 23.36% Question 9 (3.3 points) Payday loans are short-term loans that charge very high interest rates. Suppose Bob can borrow a payday loan of $100 today and repay $120 in two weeks. What is the effective annual rate (EAR) implied by this loan (assuming 52 weeks per year)? A) 11,347.55% B) 12,347.55% C) 3,685.68% D) 3,785.68% Question 10 (3.3 points) Holding other things equal, the present value of an annuity due is than that of an annuity. The future value of an annuity due is than that of an annuity. A) Smaller, smaller B) Larger; smaller C) Smaller; larger D) Larger; larger