13) A dollar today is worth more than a dollar to be received in the future because A. a stated rate of return is guaranteed on all investment opportunities B. the dollar can be invested today and earn interest C. inflation will increase the purchasing power of a future dollar D. None of these options are true. 20. 14) Ten years ago, Lucas Inc. earned $0.50 per share. Its earnings this year were S2 What was the growth rate in earnings per share (EPS) over the 10-year period? A.15.17% B.15.97% C.16.77% D.17.61% E18 49% 15) Bob has $2,500 invested in a bank that pays 4% annually. How long will it take for his funds to double? A. 14.39 B. 15.15C. 15.95 D 16.79 E.17.67 16) What is the PV of an ordinary annuity with 10 payments of $2.700 if the appropriate interest rate is 5.5%? A $16,576 B. $17,449 C. $18,367 D. $19.334 E$20,352 17) Your aunt is about to retire, and she wants to selil some of her stock and buy an annuity that will provide her with income of $50,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25% How much would it cost her to buy such an annuity today? A $574,924 B. $605,183 C. $635,442 D.$667,214 E. $700,575 18) Sam was injured in an accident, and the insurance company has offered him the choice of $25,000 per year for 15 years, with the first payment being made today, or a lump sum. If a fair return is 7.5%, how large must the lump sum be to leave him as well off financially as with the annuity? A $225,367 B. $237,229 C. $249,090 D. $261,545 E. $274,622 19) What is the present value of the following cash flow stream at a rate of 6.25%? Years: 0 3 S75 S225 So S300 CFs: SO A. $411.57 B. $433.23 C. $456.03 D. $480.03 E. $505.30 20) An annuity due makes payments and an ordinary annuity makes payments A at the end of each period, at the beginning of each period B. at the end of each period; at the end of each period C. at the beginning of each period; at the end of each period D. at the beginning of each period, at the beginning of each period 21) Your Aunt Ruth has $500,000 invested at 6.5%, and she plans to retire. She wants to withdraw $40,000 at the beginning of each year, starting immediately. How many years will it take her to exhaust her funds? A. 9.00 B. 9.60 C.20.63 D. 22.86 E. 26.58