1. What is the PV of a series of $5,000 annual payments over 5 years if the discount rate is 8%? 19,964 . 25,000 Cannot be determined C. d. 29,333 2. T/F The higher the future payments the higher my PV all else equal 3. T/F The lower the discount rate the lower my PV on a series of future payments 4. 4. T/F Essentially, the value of stocks and bonds is the discounted value of their cash flows or dividends. 5. What is my monthly mortgage payment on a 200k home with a 5% interest rate on a 30 year mortgage a. 13,010 b. 1,074 c. 1,084 d. 556 6. T/F To calculate a loan payment I must adjust my number of periods and my interest rate to reflect the payment terms (monthly, quarterly) 7. What rate of return did I earn if I invest 50k and receive 75k 7 years later? I can earn 9% 8. What is the FV of a series of $7,000 annual payments over 10 years if 9. How many years will it take to generate 500k if I can invest 50k now and invest 5k annually at a rate of 8% 10. T/F The higher the rate earned the fewer number of years it will take to get to a given future value