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13. Your fath er invested a lump sum 26 years ago at 4.25 percent interest. Today, he gave you the proceeds of that investment which
13. Your fath er invested a lump sum 26 years ago at 4.25 percent interest. Today, he gave you the proceeds of that investment which totaled $51,480.79. How much did your father originally invest? A. $15,929.47 B. $16,500.00 C. S!7,444.86 D. $17,500.00 E. $17,999.45 14. If you are borrowing money, which one of the following rates would you prefer? A. 9% paid annually B. 9% compounded semi-annually C. 9% compounded quarterly D. 9% compounded monthly 15. You would like to give your daughter $75,000 towards her college education 17 years from now. How much money must you set aside today for this purpose if you can earn 8 percent on your investment? A. S18,388.19 B. $20,270.17 C. $28,417.67 D. $29,311.13 E. $32,488.37 16. The present value interest factor is computed as: E.1+r+t 17. One year ago, you invested $1,800. Today it is worth $1,924.62. What rate of interest did you earn? A. 6.59% B. 6.67% C. 6.88% D. 6.92% E. 7.01% 18. Forty years ago, your mother invested $5,000. Today, that investment is worth $430,065.11. What is the average annual return she earned on this investment? A. 11.68% B. 11.71% C. 11.78% D. 11.91% E. 12.02%
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