1.Duff's Brewery purchased their crowler equipment using a five-year note. At maturity, the value of the note will be $20,000. The annual discount rate is 8%, and payments are made monthly. How much did the company borrow?
A. 13,612
B. 13,242
C. 19,346
D. 12,000
2. What is the present value of a series of annuity payments of $7,000 each for 12 years made annually with an annual discount rate of 5% with the first payment starting today?
A. $3,898
B. $65,145
C. $62,043
D. $11,200