1. What is the present value of an annuity due if the payments are $78 a month for 60 months at a monthly interest rate of 2 percent?
$2,611.04
$2,614.02
$2,765.58
$2,673.30
2. Susan has been saving $11,500 a year ever since she started to work. She has earned an average return of 9.86 percent and now has a total of $242,629 in her savings account. How many years has it been since Susan first started saving money?
8.93 years
11.96 years
13.92 years
11.11 years
3. What is the effective annual rate on a loan that charges 8.2 percent, compounded quarterly?
8.50 percent
8.46 percent
8.20 percent
8.37 percent
4. What is the effective annual rate of a loan that charges interest at a rate of 6.0 percent, compounded continuously?
6.08 percent
6.18 percent
6.29 percent
6.40 percent