1. Joe is offering you the following payments: Year 1 = $1,000; Year 2 = $3,000; Year 4 = $5,000; and Year 6 = $10,000. If you think you should earn 10% on similar risk investments, what is the maximum amount you would pay to receive the payments?
$12,448,24
$11,987.25
$14,739.01
$13,474.80
2. Jack and Jill are buying a new $339,999 house. The bank wants 5% down payment and will finance the remainder at 3.75% annual interest for 30 years. About how much is each monthly payment?
$1,199.35
$1,292.09
$1,304.04
$1,495.86
none of the above