20. Suppose you deposited $250 at the end of 2011, 2012, 2013 and 2014. How much would you have in your account on 1 Janusary 2015, hsod o annual compounding of 8% by your bank? A. S1025.25 B. $1235.53 C. $1183.53 D. S1126.53 21 You want to deposit amounts in the bank at the end of 201i,2012,2013 and 2014, so that you have $1259.71 in your account on 1 January 2015 Calculate how large each of your payments would noed to be ir the bank compounds quarterly at 8% pa A. $279.56 B. $259.83 C. $284.19 D, $314.93 22. Assume that you will require $1000 in four years time. Suppose that you can afford to deposit only S186.29 at the end of cach year, the first dleposit to be made in one year's time. What interest rate would you require to reach your target if the bank compounds annuallty? A. 15%pa B. 18.5% pa. C. 20% p.a. D, 22.5% p.a. 23. You have a goal to ise $1000id four years time. If your mother gives amountsevery sn mol ereafter, and all the money is deposited in a brk which pups 8% pa, o each of the six payments be for you to reach your target? at the end of the first year, you make six deposits of oqual pounded sensata ually, how large must A. $74.46 B. $65.55 C. $82.74 D. $77.26 wht is the present value ofS500 payable in 10 years' time if the interest rate is 6% pa? A. $290.50 B. $335.60 C. $895.40 D. $279.20 26. what is the present value ofthe following cash flow stream, discounted at 7%pa: Year l, $100: Year 2, $400: Years 3 trough 20, S300? A. $2859.20 B. $3563.40 C. $3078.63 D. $2782.40 27. What is the impliod interest rate if you borow 585 000 and promisc to pay back s201 229 at the end of 10 years? A, 9% pa. B. 18% p.a. C. 1196 pa. D. 1396 .. 28. in student loans at an annual interest rate of". Ifshe repays SI500 per annum, how long (to the newest yer,will Karen has borrowed S12 it take to repay the loan A. 10 years B. 15 years C. 12 years D. 17 years 29. lfthe nominal interest rate is 12%pa andthe innation rate is espected to be 5%pa, what is the real me of A. 106.7% C.7% D. 8.2% 30. lfaterm deposit offers year? an interest rate of 10% pa, compounding continuously, how much will a, initial investment of S 50 000 be worth A. $55 258 B. $135 914 C. $62 519 D. $98 352 31. What is the effective annual interest rate corresponding to a nominal interestin of !0% pa compounding continuously? A. 10.5% B. 10.9% C. 12.5% D. 13% 32. Calculate the value of an investment at the end of its fourth year if the initial investment is $10 000 and it peodaces the following annual rates of return: Year l. gain i59. Year 2, gain ihe Years, loss S. Year 4, pan A. $14 295 B. S13 100 C.$13 293 D. $11 957 33. Calculate the present valueorthe follo"ing cash nows assuminghey occur at the endofach your and te interest rate is 12% pa YaS2 000)% Year 1, 55670, Year 2, 511 250 A. $2030.93 B. $26 030.93 C. $28 920 D. ($1163.19) 34. Caloulate the present value of . povernment any daipromises to pay $100 pafreve, assuming an inarest raiet li% per annum. A. $90 B. $1100 C.$909 D. Infinity
