1. Find the amount of each payment into a sinking fund if $8000 must be accumulated. Payments are made at the end of each quarter for 3 years, with interest of 8% compounded quarterly.
A) $474.24 B) $596.48 C) $421.60 D) $787.44
2. You recently met your brother. Your brother wants to buy a salad at Pat's Diner which costs $5 but he left his wallet at home. He asks you for $5 and promises to pay you back the next day. Which of the following best describes this transaction?
(A) This is an example of a direct transfer of capital
(B) This is an example of an exchange of physical assets
(C) This is an example of a derivative market transaction
(D) This is an example of primary market transaction
(E) None of the above