Suppose that you have $$1,000$ today to invest in a savings account for $1$ year. Which of the

following will result in the highest amount in your account at the end of the year?

$($A$)$ Monthly compounding

$($B$)$ Quarterly compounding.

$($C$)$ Semi$-$annual compounding.

$($D$)$ Annual compounding.

$9.$ Seven years from today $($at the end of the $7$th year$)$ you will receive the first of five annual

payments of $$800$ each. What is the present value $($today$)$ of this deferred annuity if the market

rate of interest is $9\%?($To the nearest whole dollar.$)$

$($A$)$ $$1,550$