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1)Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $5,000 living room set with three years before you need to make any payments (no erect cost incurred)

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1)Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $5,000 living room set with three years before you need to make any payments (no erect cost incurred). How much money would you have to deposit now in a savings account earning 4 percent APR. compounded monthly, to pay the $5,000 bill in three years. Alternatively, how much would you have to deposit in the savings account each month to be able to pay the ball?

2)Which of the following statements is NOT correct? Select one: Deficit spending units raise funds by issuing financial claims in the primary market. A financial claim has one issuer but possibly successive owners through the secondary market Owners of financial claims can sell them in the secondary market before maturity date. Owners of financial claims can sell them in the primary market.