12) Which of the following investments would you prefer? A) an investment eaning 8.5 percent for 20 years B) an investment eaning 10 percent for 20 years C) an investment earning 3 percent for 40 years D) an investment eaning 5 percent for 40 years 12) 13) Which of the following would you prefer? A) two hundred ten dollars today B) five hundred dollars to be recrived in 12 years when rates are 9 percent C) five hundred dollars to be received in 12 years when rates are 8 percent D) four hundred dollars to be received in nine years when rates are 8 percent 14) What would be more valuable, receiving S1.895 today or receiving $3,450 in six 14) years if interest rates are 8 percent? A) Need more information to make a determination. B) receiving $3,450 in six years C) They are worth the same amount D) receiving $1,895 today 15) Approximately what interest rate is needed to double an investment over four years? 15) A) 25 percent B) 4 percent C) 100 D) 18 percent percent 16) Given a 4 percent interest rate, compute the year 6 future value of deposits made in 16) years 1, 2, 3, and 4 of $1,000, $1,200, $1,200, and $1,400. A) $4.334.53 B) S5,191.68 C) S5,070.78 D) $5,484.56 17) You started your first job after graduating from college. Your company offers a 17) retirement plan for which the company contributes 50 percent of what you contribute each year. You expect to contribute $2,000 per year from your salary. You decide to invest the contributions in assets that you expect to earn 10 percent plan to retire in 40 years, how big will you expect that retirement account to per year. If you be? A) $1,527,787.70 C) $442,592.56 B) $885,185.11 D) $1,327,777.67 18) What is the present value of a $500 deposit in year 1, and another $100 deposit at the 18) end of year 4 if interest rates are 5 percent? A) $558.46 B) $480.00 C) $493.62 D) $582.27 19) What is the present value, when interest rates are 6.5 percent, of a $100 payment 9) made every year forever? D) $1.000.00 A) $6.50 B) $650.00 C) $1,538.406