1. What is the present value today of receiving 4 payments of $500 per year that start 2 years from now given an 7% discount rate?

$1,582.81

$1,542.32

$1,625.32

$1,752.18

2.You own a stock portfolio invested $20,000 in stock X, $60,000 in stock Y and $50,000 in stock Z. The betas for these three stocks are .5, .9, .8, respectively .What is the portfolio beta? (Hint: you must first calculate the weights)

		.75
		.80
		.85
		.78

3. Your car needs a new engine and it cost $1,500. You currently have $750 to invest at 6% compound annually, how long will you have to wait to buy the engine?11.9 years

12.54 years

14.58 years

12.20 years

10.90 years

4.You and your dog Theodore II have found a home to buy that is selling for $120,000: you will put down $20,000 and obtain a 30-year fixed-rate mortgage for the remainder. Assume that monthly payments begin in one month. What will each payment be if the interest rate you borrow at is 10%?

$725.01

$751.27

$757.76

$804.63

$877.57

5. Your friend George needs to borrow $65,000 to buy a used truck for his moving company.The bank offers him a 11% interest rate compounded monthly and he wants to pay the loan off in equal monthly payments over 7 years. What would be his monthly payment?

		$1,112.96
		$1,253.74
		$998.25
		$1,150.25
		$1,452.23