#15

E. $5,868.81 S. You have $650 today and want to quadruple your money in 8 years. What interest rate must you earn if the interest is compounded annually? A. 18.08 percent B. 19.90 percent C. 22.15 percent 18.92 percent 21.21 percent 16. Jason is buying a car and will finance it with a loan that requires monthly payments of $340 for the next three years. His car payments can be described by which one of the following terms? A. Perpetuity Cgstii B Annuity e at C. Consol CnA tin D. Lump sunm E. Present value one of these is a perpetuity? Trust income of $1,200 a year forever B. Retirement pay of $2,200 a month for 20 years C. Lottery winnings of $1,000 a month for life D. Car payment of $260 a month for 60 months E. Rental payme nt of $800 a month for one year 8. ST Trucking just signed a contract that calls for a payment of $1.4 million today, S1.3 million one year from today, and $1.2 million two years from today. What is this contract worth today at a discount rate of 7.75 percent? $3,378,266.99 $3,640,082.69 C. S3-900,000.00 D. $3,423,439.01 E. S3,202,840.91