1. You borrowed $1,500 at 6% compounded annually. Your payments are $143.17 at the end of each year. How many years will you make payments on the loan?
a. 17 years
b. 19 years
c. forever
d. 20 years
e. 18 years
2. You just won the lottery. You and your heirs will receive $26,000 per year forever, beginning one year from now. What is the present value of your winnings at an 8% discount rate?
a. $325,000
b. $312,500
c. $337,500
d. $200,000
e. $182,500