18. What is the future value of S11,600 invested for 17 years at 7.25 percent c annually? A) S32,483.60 B) S27,890.87 C) S38,991.07 D) S41,009.13 E) S38,125.20 19. You own a classic car currently valued at $64,000. If the value increases by 2.5 percent annually, how much will the car be worth 15 years from now? A) S94,035.00 B) S86,008.17 C) $80,013.38 D) S92,691.08 E) S91,480.18 20. You will receive S15,000 in two years when you graduate. You plan to invest this at an annual interest rate of 6.5 percent. How much money will you have 8 years from now? A) $24,824.94 B) S19,381.16 C) S21,887.13 D) $23,209.19 E) S20,414.73 21. Which one of the following statements correctly defines a time value of money relationship? A) Time and future values are inversely related, all else held constant. B) Interest rates and time are positively related, all else held constant C) An increase in a positive discount rate increases the present value. D) An increase in time increases the future value given a zero rate of interest. E) Time and present value are inversely related, all else held constant. 22. Which one of the following statements related to annuities and perpetuities is correct? A) An ordinary annuity is worth more than an annuity due given equal annual cash flows for 10 years at 7 percent interest, compounded annually B) A perpetuity comprised of $100 monthly payments is worth more than an annuity of $100 monthly payments provided the discount rates are equal. C) Most loans are a form of a perpetuity. D) The present value of a perpetuity cannot be computed but the future value can. E) Perpetuities are finite but annuities are not