6. Actively managed mutual funds charge higher management feesthan passive funds. Assume that the net return to an active fund(after fees) is 7.32 percent (0.61 percent per month) and the netreturn to a passive fund is 8.25 percent (0.6875 percent permonth). Consider an investor who invests $675 per month(end-of-month) over twenty years in the passive fund. Now consideran investor who invests on a monthly basis over twenty years in theactive fund. If the active fund investor wants the same futurevalue as the passive fund investor, then how much more must sheinvest per month?
A. more than $81.25
B. less than $81.25 but more than $70.50
C. less than $70.50 but more than $62.25
D. less than $62.25 but more than $53.80
E. less than $53.80

7. Hardy Hammers, Inc. is planning to borrow $1,175,000 on a10-year, 6.75 percent, annual payment, fully amortized term loan.How much of the payment made at the end of the third year willrepresent interest paid?
A. less than $61,240
B. more than $61,240 but less than $63,285
C. more than $63,285 but less than $65,330
D. more than $65,330 but less than $67,375
E. more than $67,375

8. Hardy Hammers, Inc. is planning to borrow $1,175,000 on a10-year, 6.72 percent, annual payment, fully amortized term loan.How much of the payment made at the end of the ninth year willrepresent repayment of principal?
A. less than $136,875
B. more than $136,875 but less than $139,370
C. more than $139,370 but less than $142,145
D. more than $142,145 but