**Choose the Correct answer – supplement your answer with calculations**.

a. What value of C makes the two annual cash flows equivalent at an annual rate of 10%?

$99 $150 $220 $160

b. Suppose you deposit $C at the end of each month for 10 years at an interest rate of 12%, compounded monthly. What equal end-of-year deposit over 10 years would accumulate the same amount at the end of 10 years under the same interest compounding?

*A* = [*C*(*F/A*, 1%, 120)] X (*A/F*, 12%, 10)

*A* = *C*(*F/A*, 1.005%, 120) X (*A/F*, 12.68%, 10)

*A* = [12*C*(*F/A*, 12.75%, 10)] X (*A/F*, 12.75%, 10)

*A* = *C*(*F/A*, 1.005%, 12)

None of the above