29) If the rate of interest (r) is 9%, then you should be indifferent about receiving S750 in one year or today B) $750 today Explanation Benefit $750/(S1.09 in one year/$1.00 today) = $688,07 A) $688.07 today C) $825.68 today D) None of the above 30 A) $462.96 in one year If the rate of interest (r) is 8%, then you should be indifferent about receiving $500.00 today or C) $540.00 in one year D) None of the above B) $500.00 in one year 31) interest rate of 8.2%, how much money can he borrow from the bank on the basis of this information? A) $2460 Owen expects to receive $30,000 at the end of next year from a trust fund. If a bank loans money at an B) $13,863 C) $27,726 D) $32,460 32 the value of the money in her savings account in one year's time? A) $4298 Stella deposits $4500 in a savings account at a bank that offers interest of 4.7% on such accounts. What is B) $212 C) $4712 D) $6597 33) year. If the market interest rate is 9% over the same period, should this investment be made? A) The B) The investment will yield S66,272 more than putting the money in a bank C) The investment will yield $74,556 more than putting the money in a bank D) The investment will yield $82,840 more than putting the money in a bank. An investment will pay $289,940 at the end of next year for an investment of $190,000 at the start of the nvestment will yield $82,840 less than putting the money in a bank. 34) If $432 invested today yields $450 in a year's time, what is the discount factor? A) 0.10 B) 0.96 C) 1.96 D) 1.92 Valuing Cash Flows at Different Points in Time 35) What is the present value (PV) of $100,000 received six years from now, assuming the interest rate is 8% per year? A) $60 000.00 A) $60 000.00 36) What is the future value (FV) of $50,000 in thirty years, assuming the interest rate is 12% per year? A) $32 500.00 A) $32 37) Sara wants to have $600,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 8%, to ensure that she has $600,000 in 20 vears? A) $128 A) $128 729 729 38) On the day Harry was born, his parents put $1200 into an investment account that promises to pay a fixed interest rate of 6 percent per year. How much money will Harry have in this account when he turns 21? A) $3263 D) $3766 C) $8158 B) $4079