1. Whats the future value of $7,500 after 10 years if the appropriate interest rate is 8%, compounded annually? *

6 points

a) $12,620

b) $50,016

c) $16,192

d) $1,500

e) None of the above

2. Whats the present value of $25,000 received after 5 years if the appropriate interest rate is 10%, compounded annually? *

6 points

a) $13,620

b) $19,690

c) $1,670

d) $15,523

e) None of the above

3. Whats the future value of $50,000 after 3 years if the appropriate interest rate is 10%, compounded annually? *

6 points

a) $66,550

b) $72,835

c) $41,111

d) $1,888

e) None of the above

4. Whats the present value of $19,000 received after 19 years if the appropriate interest rate is 19%, compounded annually? *

6 points

a) $1,888

b) $697

c) $3,888

d) $852

e) None of the above

5. Lina Co. has net income of $10,000 and common equity of $100,000. The ROE ratio for the company is: *

8 points

a) 5%

b) 18%

c) 20%

d) 10%

e) None of the above