1) What is the future value (at the end of 9 years) of an annuity that pays $400 a quarter over 9 years with the payments invested at 6.3% per annum (assume compounding matches payment periods, common assumption for such problems)? (enter your answer in the following format 123456.78) ______

2) Jack and Jill need to save $8400 toward a new car. How long will it take them if they save $300 a month earning an annual interest of 4.8% (compounded monthly)? (Treat as an ordinary annuity.) (State your answer in years rounded to the second decimal place, e.g., 12.34) ______

3) How much must we invest at the end of each month to build a balance of $420,000 over 15 years if we earn 10% per annum (compounded monthly)? (Round to nearest penny and enter, for example, as 123456.78) ______

4) What would be the sum of all the payments made (i.e., total $s paid over the 30 years, ignoring time value) on the following house mortgage? Loan amount is $249,000 with an interest rate of 6.7% per annum, term of 30 years, and monthly payments. (Round to nearest penny and enter, for example, as 123456.78) ______

5) What is the rate of return being earned on a preferred stock that currently is selling for $48 and pays an annual dividend of $4.40 (a preferred stock is a type of perpetuity)? (Round to 100th of a percent and enter as a percentage, e.g. 12.34 and state as an annual rate) ______

6) What is the present value of the following set of cash flows if the discount rate is 13.2%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67) Year 0 cash flow = -1000 (a negative cash flow) Year 1 cash flow = 1500 Year 2 cash flow = 2100 Year 3 cash flow = 300 Year 4 cash flow = 1400

Answer: ______

7) What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 9%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67) Year 0 cash flow = -1200 a negative cash flow Year 1 cash flow = 2000 Year 2 cash flow = 200 Year 3 cash flow = 1000

Answer: ______

8) An insurance company is offering quarterly payments of $230 for the next 20 years in exchange for a one-time payment of $12,000 today. What is the per annum rate of return on this offer? (Round to nearest 100th of a percent and enter your answer as a percentage, for example, as 12.34)

Answer: ______