14. Assume that you will receive $750,000 in ten years. Assume the interest rate is 6%, compounded semi-annually. What is the present value? 15. What is the future value in 18 years of $900 (today), assuming an interest of 8 percent, compounded quarterly? In other words, if you invest $900 today, how much will you have in 18 years? The interest rate is 8%, compounded quarterly. (The stated or quoted rate is 8%, and it is compounded quarterly.) 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 FIVE 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 (compounded annually) for the FIVE years. 3) Pay $25,000 for the car at 4% interest (compounded annually) for the FIVE years. Which do you pick? A) #1 B) #2 C) #3