1. You own a toy factory that will pay you $20,000 per year for 14 years, with the first payment being made today. If you think a fair return is 11%, how much should you ask if you decide to sell it? a. $184,337 b. $154,997 C. $217,513 d. $115,976 e. $202,771 2. What is the present value of a 6-year ordinary annuity of $2,000 per year plus an additional $3,000 at the end of Year 6 if the interest rate is 7%? a. $11,793.06 b. $11,532.11 C. $14,974.77 d. $13,643.81 e. $12,390.03 3. Your uncle has $2,000,000 and wants to retire. He expects to live for another 45 years, and to be able to earn 4% on his invested funds. How much could he withdraw at the end of each of the next 45 years and end up with zero in the account? a. $87,573.77 b. $93,401.63 C. $74,664.40 d. $70,952.45 e. $96,524.91 4. Your bank account pays a nominal interest rate of 11%, compounded semi-annually. Your plan is to deposit $2,400 in the account at the end of each of the next 10 years. How much will you have in the account at the end of year 10, after making your final deposit? (Hint: The annuity payments don't match compounding periods.) a. $32,259.47 b. $36,570.13 C. $40,722.12 d. $40,456.05 e. $ 66,131.91