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1) Your neighbor is planning to move next year. You recently told your best friend that you have decided to sell all of your current

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1) Your neighbor is planning to move next year. You recently told your best friend that you have decided to sell all of your current furniture just prior to moving as you do not want to pay to transport it across the country. Your friend offered to pay you $9,200 next year for this furniture. What is your friend's offer worth today if you can earn 6.75 percent on your money? A) $8,779.99 B) $8,818.22 C) $7,886.79 D) S9,821.00 E) $8,618.27 2) Kevin is considering a business investment which is guaranteed to pay $14,000 one year from today. What is the maximum amount Paul should pay today for this investment if he wants to earn a 7.75 percent rate of return? A) $13,411.68 B) $12,993.04 C) $13,023.26 D) $12,689.02 E) $13,701.08 3) Ann is considering buying a condo at a cost of $209,400. She estimates that she can resell the building after one year at a price of $305,500. What discount rate approximately equates those two prices? A) 45.89 percent B) 16.02 percent C) 31.81 percent D) 11.48 percent E) 29.50 percent is currently valued at $3,530 but is currently not for sale. The value of the painting is increasing by 4.7 percent annually. Which one of the following prices best represents 4) The Portland Store owns a painting which it displays in its showroom. The painting Assessment Tool Financial Management Foundations-FIN 623 Last Update September 18, 2018 Page 1 of 3

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