1. You need $3,000 to buy a new stereo for your car. If you have $1,100 to invest at 7% compounded annually, how long will you have to wait to buy the stereo?

		12.39 years
		13.05 years
		13.97 years
		14.20 years
		14.83 years

2. What is the future value of $60,000 received today if it is invested at 7% compounded annually for six years?

$90,043.82

$89,693.39

$84,952.40

$91,235.84

$69,374.89

3. What is the total present value of the following three cash flows: $150 received at the end of year three, $250 received at the end of year four, and $800 received at the end of year eight, if the discount rate is 7%?

$778.78

$825.90

$635.56

$789.89

I think Bermuda right now would be good.

4.

What is the expected return for the following stock? State Probability E(Ri) Average .30 .20 Recession .20 -.10 Depression .50 .20

		.055
		.080
		.095
		.105
		.140 5. You need to borrow $35,000 to buy a new Triple Machiato, Moca, FrappoWapper, Derriere Flapper Coffee Maker