a.) 17 years b.) 33 years c.) 16.5 years d.) 8.5 years $2,000, and $3,000 respectively for the next three years (end of year) on a particular investment. What is the most you be willing to pay for this investment? a.) $5,022 b.) $2,577 c.) $6,000 d.) $4,763 Wait 10 years to get married. Your sister is getting married today. What amount should she receive in today’s dollars to match you gift? The appropriate discount rate is rate 12%. a.) $8,049 b.) $10,000 c.) $22,321 d.) $25,000 Of the next 60 years and earn 11% on the investment, how much will you have when you retire? a.) $792,000 b.) $1,048,114 c.) $9,510,132 d.) $10,556,246 made for 12 years with a required annual return of 5%? a.) $65,145 b.) $128,325 c.) $125,195 d.) $62,043 annual payments? a.) $14,052 b.) $2,052 c.) $13,965 d.) $13,427 Payments will be made at the end of each of the next 10 years. Similar risk investments are yielding 7%. What should she pay for the investment? a.) $60,000 b.) $45,091 c.) $42,141 d.) $30,501 Maturity value of $20,000. The discount rate is 8% annually and the interest is discounted monthly. How much did the company borrow? a.) $13,612 b.) $13,424 c.) $19,346 d.) $12,000 Repayment schedule requires payments of $1401.95 at the end of year the next 15 years. What interest rate is he charging you? a.) 7.0% b.) 7.5% c.) 8.0% d.) 8.5% Payments are $1,000 for 10 years? a.) $15,937 b.) $16,145 c.) $17,531 d.) $11,000 Pay 8% annual interest compounded continuously. Calculate the future value at the end of five years. a.) $14,693 b.) $15,000 c.) $14,918 d.) $14,500 discount rate of 10
%. Do not adjust the discount rate to a semi-annual rate. Keep it annual and adjust to the appropriate value. a.) $95,346 b.) $56,447 c.) $90,909 d.) $100,000 what are the annual payments? a.) $8,718 b.) $37,689 c.) $4,762 d.) $8,024 Discount rate of 5% discounted monthly? a.) $25,000 b.) $48,102 c.) $47,310 d.) $207,893 milk for your grandchildren in 35 years if inflation averages 5% per year? a.) $3.77 b.) $6.28 c.) $12.34 d.) $19.80 Payments required to amortize this loan? a.) $1,248 b.) $15,336 c.) $11,400 d.) $3,936 Next four years. You can earn an annual rate of 8% on your investments. How much can you withdraw each year (end of year) just using up the $50,000? a.) $12,000 b.) $11,096 c.) $11,750 d.) $15,096 (3.5% semi-annually) and will put away $7,500twice a year at the end of each semi-annual period. How long before you can retire? Round to the nearest figure. a.) 51years b.) 25 years c.) 35 years d.) 66 years Years with a required return of 5% with the first payment starting today? a.) $3,898 b.) $65,145 c.) $62,043 d.) $11,200 Finance it for 60 months at 6% annual interest, what will be you rmonthly payments? a.) $471.67 b.) $544.40 c.) $547.12 d.) $1,751.08 . each of the next six years $1,500, $3,500, $$3,750, $4,250, $5,000 when the discount rate is 4%. a.) $45,000 today in one lump sum. b.) $70,000 paid to you in seven equal payments of $10,000 at the end of each of the next seven years. c.) $80,000 paid in one lump sum 7 years from now. Per year for 26 years. What is your rate of interest? What would the payments be if this were a monthly payment loan?