1. Award: 10.00 points According to the Census Bureau, in October 2016, the average house price in the United States was $28,658. 5 years earlier, the average price was $21,308. What was the annual increase in the price of the average house sold? 5.50% 7.33% 6.72% -5.75% 6.11% 2. Award: 10.00 points You're trying to save to buy a new $140,000 Ferrari. You have $50,000 today that can be invested at your bank. The bank pays 4.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car? 24.25 years 26.25 years 26.50 years 26.75 years 26.00 years 3. Award: 10.00 points Imprudential, Incorporated, has an unfunded pension liability of $600 million that must be paid in 24 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 8.0 percent, what is the present value of this liability? $92,727,210 $107,343,999 $96,511,994 $87,050,034 $94,619,602 4. Award: 10.00 points You have just received notification that you have won the $3.5 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 78 years from now. What is the present value of your windfall if the appropriate discount rate is 7 percent? $61,819.86 $17,512.96 $16,440.73 $18,227.77 $17,870.36 5. Award: 10.00 points Your coin collection contains 46 1958 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2046, assuming they appreciate at an annual rate of 10 percent? $191,883.54 $25,370.93 $206,022.33 $201,982.68 $195,923.20 6. Award: 10.00 points In 1904, the first Putting Green Championship was held. The winner's prize money was $150. In 2016, the winner's check was $1,179,000. (Do not round intermediate calculations.) a. What was the percentage increase per year in the winner's check over this period? Interest rate 8.34 -23.80 8.44 8.39 8.24 Future value b. If the winner's prize increases at the same rate, what will it be in 2049? T % 16,568,081.94 150.00 17,080,274.59 16,822,288.08 16,070,796.76 7. Award: 10.00 points Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2016, a sculpture was sold at auction for a price of $10,303,500. Unfortunately for the previous owner, he had purchased it in 2012 at a price of $12,376,500. What was his annual rate of return on this sculpture? -5.06% 4.69% -4.03% -3.81% -4.48% 8. Award: 10.00 points You have just made your first $2,500 contribution to your retirement account. Assume you earn a return of10 percent and make no additional contributions. a. What will your account be worth when you retire in 40 years? Future value for starting now $113,148.14 $ 3,624.25 $118,805.55 $117,674.06 $107,490.73 b. What will your account be worth if you wait 6 years before contributing? T Future value if waiting 6 years $63,869.17 $ 4,428.90 $67,062.63 $66,423.94 $60,675.72 9. Award: 10.00 points You are scheduled to receive $43,000 in two years. When you receive it, you will invest it for 9 more years at 5 percent per year. How much will you have in 11 years? $63,371.76 $66,707.11 $48,246.79 $73,544.59 $70,042.47 10. Award: 10.00 points You expect to receive $16,000 at graduation in two years. You plan on investing it at 10 percent until you have $91,000. How long will you wait from now? 16.24 years 20.24 years 18.24 years 22.26 years 22.67 years