12. Which of the following investment alternatives would provide the greatest ending wealth for your investment? 10% compounded daily (360 days). 10.5% compounded annually. 10.25% compounded quarterly. d. 10.18432% compounded continuously. There is not sufficient information to determine the best alternative from the above information. a. b. c. e. a. 13. Which of the following will decrease the present value of the mixed cash flows for years 1 through 5 of $1,000; $4,000; $9,000; $5,000; and $2,000 respectively given a 10% discount rate? Decrease the discount rate by 2%. b. Switch cash flows for years 1 and 5 so that year 1 is $2,000 and year 5 is $1,000. c. Switch cash flows for years 2 and 4 so that year 2 is $5,000 and year 4 is $4,000. d. Switch cash flows for years 2 and 5 so that year 2 is $2,000 and year 5 is $4,000. 14. When comparing an annuity due with an ordinary annuity with the same payment and duration (and assuming positive interest rates), the annuity due will always have a present value and will always have a future value. a. higher; higher b. higher; lower c. lower, higher d. lower, lower None of the combinations listed above is always correct. e. 15. You have just graduated and have decided to purchase a brand new sports car to enjoy your newfound freedom. Your local credit union will provide financing for 60 months at a 9 percent annual rate, compounded monthly. You will give 15 percent of the $26,000 purchase price in cash to the dealer. The credit union will be used to finance the remaining 85 percent of the purchase price with the first payment due 1 month from today. What will be your monthly payment? a. $539.71 b. $468.76 $433.33 d. $368.33 c