31.Tiger Tail, Inc. borrowed $150,000 from a bank at 10% and promised to repay the loan in 3 equal year-end payments. How much total interest expense will the company incur over the three year period?

a.$30,952

b.$37,302

c.$45,000

d.$112,696

32.How much would you have to invest today at 6% interest to have $30,000 at the end of five periods?

a.$3,600

b.$9,000

c.$22,418

d.$28,302

33.What amount must be invested at 10% to amount to $1,000 at the end of 15 periods?

a.$315

b.$667

c.$334

d.$240

34.William has recently made an investment that is expected to grow large enough for him to withdraw $20,000 per year for several years upon his retirement 20 years from now. The value of his current investment is expected to grow by

a.the same amount each year

b.an increasing amount each year

c.a decreasing amount each year

d.an increasing number of dollars and at an increasing rate

35.Manny is buying a vacation home. Manny makes a down payment of $45,000 and borrows the remainder of the cost to complete the purchase. Manny’s mortgage requires him to pay $12,500 per period for 20 periods at an interest rate of 12%. What is the approximate present value of the amount borrowed?

a.$250,000

b.$205,000

c.$120,575

d.$93,368

36.The Sporting Goods Depot borrowed $106,000 via 3-year, 8% note payable. The note is to be repaid in three equal year-end installments. How much interest expense will the firm incur for the first year of the note?

a.$5,798

b.$6,982

c.$8,480

d.$9,340

37.How much must be invested today at 9% per period to amount to $175,000 in 15 periods?

a.$15,750

b.$11,667

c.$48,045

d.$16,445

38.What amount would accumulate if you invested $1,000 at the end of each period for 21 periods at 10%?

a.$22,000

b.$25,959

c.$64,003

d.$134,540

39.What is the present value of an ordinary annuity requiring payments of $10,000 to be made over 16 periods at 10%?

a.$16,000

b.$22,469

c.$34,880

d.$78,240

40.What is the amount of each periodic payment that a worker must make at the end of each period for eight periods to accumulate a savings account of $100,000 by the end of the eighth period to help pay his retirement, assuming the bank pays 5% interest?

a.$12,500

b.$ 8,338

c.$15,472

d.$10,472