1. If you invest $100 at the end of the year each year for three years in an account with an annual rate of return of 5% per year, compounded annually, how much will you have at the end of the three years?
$315.25
$431.01
$315.00
$115.76
2. Assume you borrow $15,000. The loan is to be fully repaid in the form of a 3 year, ordinary annuity, at an annual interest rate of 8%. How much of the first year's total payment will go to repayment of principal? (This basic loan information will be used in another question.)
$5,820.50
$1,200.00
$4,620.50
$10,379.50