Question
1. Which of the following comes closest to the value of investing $5,000 today for 5 years at the rate of 4% compounded monthly? a.
1. Which of the following comes closest to the value of investing $5,000 today for 5 years at the rate of 4% compounded monthly?
| a. | $ 6,744 | |
| b. | $ 6,105 | |
| c. | $ 5,808 | |
| d. | $ 6,417 | |
| e. | $ 7,088 |
2. What amount comes closest to the future value, at the end of year 20, of a 15 year annuity of $550 that makes its first payment at the end of year 6? Use an interest rate of 4%.
| a. | $ 13,821 | |
| b. | $ 11,868 | |
| c. | $ 11,013 | |
| d. | $ 12,802 | |
| e. | $ 10,229 |
3. An inheritance offers the amount of $100 in one year but then grows that amount by a constant rate of 4% forever. Which of the following comes closest to the present value of the inheritance if the bonds required rate of return is 10%?
| a. | $ 2,500 | |
| b. | $ 1,429 | |
| c. | $ 1,667 | |
| d. | $ 3,333 | |
| e. | $ 2,000 |
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Campaign Finance Reform
Authors: Melissa M. Smith, Glenda C. Williams, Larry Powell, Gary A. Copeland
1st Edition
0739145657, 978-0739145654
