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1 4 Term in years: 2 3 Rate: 1.8% 2.25% 2.30% 2.66% 3.13% The table above shows the interest rates available from investing in risk-free

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1 4 Term in years: 2 3 Rate: 1.8% 2.25% 2.30% 2.66% 3.13% The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. What is the present value (PV) of cash flows from an investment that yields $8,000 at the end of each year for the next four years? A. $30,185 OB. $42.259 O c. $36,222 D. $24,148 Conf pd Consider the following investment alternatives: Investment B D Rate 6.515% 6.3356% 6.4093% 6.399% Compounding Annual Daily Quarterly Monthly Which alternative offers you the lowest effective rate of return? O A. Investment A OB. Investment B C. Investment C OD. Investment D Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provide $3,000 in the first year, and will grow by 6% per year, forever. If the interest rate is 12%, how much must Martin provide to fund this bequest? O A. $40,000 B. $50,000 C. $25,000 D. $60,000 Con

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