14. You are the beneficary of a trust set up by your grandparents. You will receive your first $1,000 cash six years from now ( T6) when you turn age 25. These payments are intended to help cover your IMng expenses over the course of your expected lifetime. Assume the appropriate discount rate is 6.0% per annum. What is the present value of this perpetuity a. $11,749 b. $12,077 c. $12,098 d. $12,454 e. $16,667 15. Today Is January 14, 2020 (T=O). You take out a 30 year fully amortizing mortgage of $300,000. Payments are made at the end of each calendar month. The loan hos a fixed annual rate of 5.0% (or 5.0%/12 per month). Ignore your answer to the previous question and assume you try to pay off the mortgage early by making payments of $2,000 Instead. Approximately how payments will you have to make until you have at least $100,000 of equity in your home? oor 106 107 179 180 181 16. Today (T=0), you deposit $250.00 In a savings account. You make no additional deposits and no withdrawals over the next 10 years ( 10). In 10 years, you have $539.73 In your savings account. Assuming a constant Interest rate, the balance of you savings account in 5 years (T=5) Is closest to: a. $342 b. $367 c. $378 d. $394 e. $400 17. Assuming a discount rate of 8%, a cash flow of $1.00 two years from now ( T2) a. Is worth about 16.6% less than a $1.00 cash flow received today (T-0) b. is worth about 14.3% less than a $1.00 cash flow received today (T=0) C. is worth about 13.0% less than a $1.00 cash flow received today (T=0) d. is worth about 85.7% more than a $1.00 cash flow received today (T=0) e. is worth about 87.0% more than a $1.00 cash flow received today (T=0)