14. Assume that you will receive $50,000 in ten years. Assume the interest rate is 10%, compounded semi-annually. What is the present value? a. $7,432.18 b. $19.277.16 c. $30,695,63 d. $129,687.12 c. $18.844.47 15. What is the future value in 20 years of $900 (today), assuming an interest of 11 percent, compounded quarterly? In other words, if you invest $900 today, how much will you have in 20 years? The interest rate is 11%, compounded quarterly. a. $18000 b. $1972.01 c. $7256.08 d. $7884.77 e. 558500.78 16) You will buy a new car today. You will borrow the full price of the car. You will get a FIVE year loan that will be paid back annually. It will take you the full EIVE years to pay back the loan. (In other words, you will not pay it off early.) You will pay back the same amount every year (an annuity). The auto dealership offers you 3 choices. 1) Pay $30,000 for the car at 0% interest for the FIVE years 2) Pay $28,000 for the car at 2% interest for the FIVE years. 3) Pay $25,000 for the car at 4% interest for the FIVE years Which do you pick? A) B) C) #1 #2 #3 17. You have $500 that you would like to invest for one year. You have 2 choices: savings account A which earns 8.3% compound annually or savings account B which camns 8% compounded semi-annually. Which would you choose? Savings Account A Savings Account B c. You are indifferent between Savings Account A and Savings Account B A B 18. Assume that a bank pays you 3% interest per (every) quarter on a savings account. The periodic rate is 3%) Assume that you save $100,000 in that account today. How much will you have in that account exactly one year from today? $103,000 b. $112,000 c. $112,551 d. $103,034 S112,120 e