10. You will receive $5,000 per year, every year for the next five (5) years, beginning at the end of this year. If you use 6% as your discount rate, calculate the present value of this annuity. 11 Refer to the previous question: this is a(n) a. back load annuity b. front load annuity c. annuity due d ordinary annuity e none of the above 12 A client invests $5,000 every year, at the end of each year, beginning one year from today, for the next five years. The account is expected to earn 6.25% What will the balance be in five years. 13 An investor deposits $5,750 in a certificate of deposit which pays 7.35% and compounds weekly. What will be the balance in seven (7) years 14 Cash flows from a new factory are expected to be $3,000,000 per year, every year for the next ten (10) years. If investor's use 6.25% as the discount rate, calculate the present value of this investment. A 15 Parker Corporation is planning to break ground on a new factory. The factory will require an initial cash outlay of $5,000,000 which will be due in September 2020 (five years). How much will Parker need to deposit, or set a-side every quarter, for the next 5 years (60 months), in an account that earns 9.35%, in order to have the funds available for this outlay (investment). 16 The value of any asset is a. whatever a professional appraiser determines is appropriate b. what the highest bidder is willing to pay for it c. the current market price d the discounted value of all expected cash flows e none of the above 17 Stan Kunbar is interested in investing in a project that is expected to pay $5,000 every ear, for the next fifteen (15) years. Using a discound rate of 9.25%, what is the present value of this project. 18 $50,000 depoisted in an account earning 3.25% compounded daily. Calculate the future value 19 Following are the historical returns for Cool Hill Ski Resort (where the snow is smooth as silk!) Year A 2011 - 12.0% 2012 - 8.0% 2013 -12.0% 2014 -16.0% 2015 - 7.5% What is the expected return for 2016 (average) and standard deviation (population) for this Cool Hill A Average= B Standard Deviation (population)=